Rupee rises 16 paise a dollar in early trade

The Indian rupee strengthened by 16 paise to 46.45 against the US currency extending Friday's gains in early trade today on hopes of increased capital inflows into equity and dollar selling by exporters.

Dollar's weakness against other currencies also supported the Indian rupee.

At the Interbank Foreign Exchange (Forex) market the local unit appreciated by 16 paise to 46.45 a dollar.

It had ended 7 paise higher at 46.61/62 in the previous session on Friday.

Forex dealers said expectations of increased capital inflows from foreign funds into domestic equities, which may open higher in tandem with other Asian markets, and dollar weakness against other currencies supported the Indian rupee.

Meanwhile, the benchmark Sensex had gained 236.20 points, or 1.41 per cent in the last session.