Rupee gains 34 paise against dollar in early trade

The rupee appreciated by 34 paise to two-week high of 62.35 against the dollar in early trade today at the Interbank Foreign Exchange after the American currency weakened overseas amidst sustained selling of the Greenback by exporters and banks.

Forex dealers said besides selling of the American currency by exporters and banks, the tumbling of the dollar against euro and yen following a surprisingly dovish forecast for growth and interest rates by the US Federal Reserve, supported the rupee.

Further, a higher opening of the domestic equity market influenced the uptrend in the rupee, they added.

The rupee had closed almost flat against the dollar yesterday.

Meanwhile, the benchmark BSE Sensex rose sharply by 246.16 points, or 0.86 per cent, to 28,868.28 in early trade today.