Mumbai: The Indian rupee on Friday appreciated by 16paise against the US currency in opening trade, following selling of dollars by banks and exporters on expectations of further recovery in the domestic bourses in line with firming Asian markets.
The greenback’s weakness against other major currencies overseas also supported the Indian unit.
At the Interbank Foreign Exchange (Forex) market, the rupee was quoted higher at Rs51.70 a dollar, a gain of 16paise over the previous close of 51.86/87.
Dealers attribute firmness in the rupee to recovery in the equity markets, raising hopes of fresh capital inflows by foreign funds.
The BSE Sensex had closed higher by 183.35 points, or 2.25%, yesterday.
Meanwhile Asian bourses were up almost 4% in early trade today.