Rupee moves up by 12 paise vs dollar

The Indian rupee advanced by 12 paise to Rs 49.03 per US dollar in early trade today on continued selling of the American currency by banks and exporters on the back of dollar weakness in overseas markets.

The rupee resumed higher at Rs 49.05/06 per dollar on the Interbank Foreign Exchange, as against last Friday's close of Rs 49.15/16 per dollar, and moved up further to Rs 49.03 per dollar before quoting at Rs 49.11/12 per dollar at 1030 hours.

The domestic currency moved in a range between Rs 49.03 and Rs 49.13 per dollar during morning deals.

Sustained selling of dollars by banks and exporters in view of dollar weakness in global markets mainly boosted the rupee value against the American currency, a forex dealer said.

The euro recovered some ground against the greenback in Asian trade today as the currency reacted positively to French and German assurances that they will act to safeguard European banks.

Meanwhile, the Indian benchmark Sensex also advanced by another 86 points, or 0.53%, in early trade.