Rupee rises smartly against dollar

The Indian rupee on Monday appreciated by 16 paise against the American currency in early trade on hopes of increased capital inflows from foreign funds boosted by last week's rally in the stock markets.

At the Interbank Foreign Exchange (forex) market, the domestic unit was quoted higher at 51.35 a dollar, a rise of 16 paise over the previous close of 51.51/52.

Forex dealers said expectations of pick-up in capital inflow from foreign funds into the domestic stock markets, which may maintained its upward march today, mainly supported the rupee.

Other Asian currencies gaining against the greenback also supported the rupee, they added.

The Indian unit on Friday had ended 35 paise higher at 51.51/52 against the US dollar and the stock markets surged over 5 per cent during the past week.

In early trade on Monday, most of the Asian bourses were up by almost 2.4 per cent.