The rupee on Thursday strengthened by 22 paise to trade at a fresh three-month high of Rs. 49.05 a dollar on the Interbank Foreign Exchange on Thursday.

Dealers said increased foreign capital inflows and dollar’s loss against the euro in the overseas markets provided support to the rupee.

The rupee had surged by 19 paise to close at Rs 49.27/28 per US dollar in the previous session amid FII inflows into equities and continued selling of the American currency by exporters.

Meanwhile, the BSE benchmark Sensex rose by 171.72 points, or 0.99 per cent, to 17,472.30 in early trade today.

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