UPDATE: Rupee rallies by 143 paise vs dollar

The Indian rupee surged by 143 paise to Rs 52.21 per US dollar in early trade today on fresh selling of dollars after the Reserve Bank of India imposed restrictions on forward trading and banks' exposure to the forex market to check the slide of the domestic currency.

In addition, dollar weakness overseas supported the rupee's rise.

The rupee resumed higher at Rs 52.90/91 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 53.64/65 per dollar, and shot up further to Rs 52.21 per dollar before quoting at Rs 52.67/68 per dollar at 1030 hours.

Fresh selling of dollars by banks in view of restrictions imposed by the Reserve Bank Of India (RBI) on forward trading and banks' exposure to the forex market mainly boosted the rupee value against the dollar, a forex dealer said.

In Hong Kong, the dollar scaled back some of its recent advances against the euro and other major currencies in early trade amid renewed investor interest in equities on the back of strong US economic data and a modest rebound on Wall Street and in Asian stocks.

Meanwhile, the BSE benchmark Sensex was up by 183 points, or 1.16%, in early trade today.