Mumbai: The rupee opened higher by 28 paise against the US currency on Wednesday on dollar selling by exporters and banks after global equity markets registered early gains.
The domestic currency opened at Rs49.87/88 against dollar, a gain of 28 paise over its previous close, at the Interbank Foreign Exchange (Forex) market.
Dealers said that rupee gained on dollar selling by banks and exporters after a surging trend in global equity markets raised hopes of a rally in domestic stocks.
The dollar falling against the euro and other Asian currencies also supported the rupee sentiments.
Asian markets on Wednesday opened on a positive note tracking a strong overnight rally in the US stocks amid hopes that the US government will rescue major troubled automakers.
Rupee on Tuesday had closed 13 paise higher against the dollar on suspected central bank intervention in support of the local currency.