Rupee rises by 21 paise against dollar in early trade

Mumbai, Dec 26: The Indian rupee rose by 21 paise to Rs 52.75 per US dollar in early trade on Monday, Dec 26 on fresh selling of the American currency by banks and exporters amid hopes of a resumption of foreign capital inflows in light of a rising trend in the equity market.

The rupee resumed higher at Rs 52.85/86 per dollar on the Interbank Foreign Exchange, as against last weekend's close of 52.96/97 per dollar, and firmed up further to Rs 52.75 per dollar before quoting at Rs 52.86/87 per dollar at 1030 hours.

The domestic currency hovered in a range between Rs 52.75 and Rs 52.95 per dollar during morning deals. Fresh selling of dollars by banks and exporters in view of the recovery in the equity market on the back of strong US economic data pushed up the rupee value against the dollar, a forex dealer said.

The BSE benchmark Sensex shot up by 199 points, or 1.27 per cent, in early trade today.

PTI