Rupee up 16 paise against dollar in early trade

Forex dealers said a higher opening in the domestic equity market and strengthening of the euro against the U.S. dollar overseas also supported the rupee.

The rupee edged higher by 16 paise to an over two-week high of 59.53 against the U.S. dollar at the Interbank Foreign Exchange market on Thursday on increased selling of the U.S. currency by exporters amid capital inflows.

Forex dealers said a higher opening in the domestic equity market and strengthening of the euro against the U.S. dollar overseas also supported the rupee.

The rupee appreciated by 38 paise — its biggest single-day rise in seven weeks — to close at 58.69 in Wednesday’s trade on optimism that the budget next week would have strong measures to put finances and the economy back on track.

Meanwhile, the benchmark BSE Sensex climbed to yet another record-high of 25,924.25, rising 83.04 points, or 0.32 per cent, in early trade on Thursday.