The rupee strengthened by six paise to 61.34 against the US dollar in early trade today at the Interbank Foreign Exchange on selling of the US currency by exporters and banks amidst sustained capital inflows.
The rupee settled four paise down at 61.40 against the dollar on Monday. Forex market remained closed yesterday on account of “Muharram”.
Traders said besides selling of the American currency by exporters and banks, continued foreign fund inflows and a higher opening in the domestic equity market, helped the local currency to strengthen but the dollar’s gain against other currencies overseas, capped the rupee’s rise.
Meanwhile, the benchmark BSE Sensex soared by 111.45 points, or 0.40 per cent, to 27,971.83 in early trade today.