Rupee gains 16 paise at 52.97/dollar

Increased capital inflows, sustained selling of dollar by exporters, banks affects rupee

The rupee today strengthened by 16 paise, near four-month high, to 52.97 against the US dollar in early trade on the Interbank Foreign Exchange on sustained selling of the American currency by exporters and banks amid increased capital inflows.

Forex dealers said increased selling of the American currency by exporters and a higher opening in the equity market helped the rupee sentiment.

The rupee had gained 15 paise to close at Rs 53.13 against the US currency in yesterday's trade.

Meanwhile, the BSE benchmark index Sensex recovered by 86.74 points, or 0.44%, to 19,746.56 in early trade today.