UPDATE: Rupee rallies 75 paise vs dollar

Moving in line with the equity markets, the rupee rallied 75 paise to 48.75 against the American currency in the early trade on sustained selling of dollars by banks and exporters amid its weakness against other overseas currencies.

The rupee resumed higher at 48.90/91 per dollar at the Interbank Foreign Exchange (Forex) market as against the last closing level of 49.50/51 per dollar and strengthened further to 48.75 per dollar before quoting at 48.81/82 per dollar at 1030hrs.

The domestic currency hovered in a range of 48.75 per dollar and 48.93 per dollar during the morning deals.

Persistent selling of dollars by banks and exporters in view of fall of dollar in overseas market coupled with strong equity market boosted the rupee value against the dollar, a forex dealer said.

In New York market yesterday, euro jumped the most in a session since March 2009 to over $1.42 for the first time since early September, after European leaders announced a plan to deal with the Greek debt crisis and boost the power of the euro-zone bailout fund.

Meanwhile, the Indian benchmark Sensex rose by 456 points of 2.64% in the early trade.