Rupee gains 16 paise against dollar in early trade

Extending its rising streak for the fourth day, the rupee appreciated by 16 paise to 66.38 against the US dollar in early trade today on increased selling of the American currency by exporters and banks amidst continued foreign fund inflows.

The dollar weakened against its rivals overseas after the US Federal Reserve Chair Janet Yellen signalled that a rate hike was not likely before June, forex dealers said.

Besides, higher opening of the domestic equity market supported the rupee, they added.

Yesterday, the rupee had gained three paise to close at 66.54 at the Interbank Foreign Exchange on persistent selling of dollars by banks and exporters in view of heavy capital inflows from foreign funds.

Meanwhile, the benchmark BSE Sensex reclaimed the crucial 25,000-mark by soaring 217.17 points, or 0.87 per cent, to 25,117.63 in early trade today.