Rupee advances gains against dollar in early trade

Brokers said improved liquidity in the market following continuous foreign fund inflows and increased buying by domestic institutional investors after the government moved forward on its bank recapitalisation programme boosted trading sentiments. Photograph:( Reuters )

PTI Mumbai, Maharashtra, India Jan 05, 2018, 04.23 AM (IST)

The rupee gained 10 paise to trade at over 2-1/2 year high of 63.31 against the US dollar in early session today on increased selling of the American currency by exporters and banks.

Besides, stock markets opened with gains and sustained foreign fund inflows also supported the domestic unit, forex dealers said.

The dollar's weakness against some currencies overseas also supported the rupee's upmove.

The rupee opened higher at 63.35 a dollar and moved to a high of 63.31 a dollar in early trade.

The rupee yesterday bounced back to end at a fresh 2-1/2 year high of 63.41, gaining by 12 paise against the US dollar on optimism over a brightening economic picture.

Meanwhile, the benchmark BSE Sensex rose 100.48 points, or 0.29 per cent, to 34,070.12 in early trade.