The rupee appreciated by 16 paise to Rs 49.03 per dollar in early trade on the Interbank Foreign Exchange today, as the US currency weakened against euro and other major currencies.
Dealers said euro's gain against the dollar on strong economic data and a higher opening in the domestic equity markets mainly supported the rupee.
The rupee ended 3 paise higher at 49.19/20 per dollar yesterday.
Meanwhile, the 30-share BSE Sensex rose by 72.38 points, or 0.40%, to 18,150.88 in early trade today.
