Rupee up by 16 paise vs dollar

The Indian rupee was up by 16 paise at Rs 48.85 per US dollar in early trade today on persistent selling of the American currency by banks and exporters in view of dollar weakness in overseas markets.

The rupee resumed higher at Rs 48.92/93 per dollar on the Interbank Foreign Exchange, as against last weekend's close of Rs 49.01/02 per dollar, and moved up further to Rs 48.85 per dollar before quoting at Rs 48.87/88 per dollar at 1030 hours.

The domestic currency hovered in a range between Rs 48.85 per dollar and Rs 48.95 per dollar during morning deals.

Banks and exporters preferred to reduce their dollar position on the back of the lower dollar in overseas markets, a forex dealer said.

In the New York market, the dollar slipped versus most major currencies last Friday, with the euro gaining as investors anticipated assurances of further efforts to rein in Europe's sovereign debt crisis at a meeting of officials from the Group of 20 nations.

Meanwhile, the Indian benchmark Sensex moved up further by 36 points, or 0.21%, in early trade.