The rupee rose by eight paise to 59.96 against the dollar in early trade on Monday at the Interbank Foreign Exchange market on increased selling of dollars by exporters and banks.

A higher opening in the domestic equity market with the Sensex climbing to a new high, and the yen’s gain against the dollar overseas also supported the gain in the rupee, forex dealers said.

The rupee had closed three paise higher at 60.04 against the dollar on Friday on persistent selling of the U.S. currency by banks and exporters in view of sustained foreign capital inflows into equity markets.

Meanwhile, the benchmark BSE Sensex spurted by 338.67 points, or 1.47 per cent to hit a new record high of 23,332,90 in early trade on Monday.

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