The Indian rupee rose by 22 paise to Rs 49.90 per US dollar in early trade today on persistent selling of dollars by banks and exporters in view of weakness of the American currency in overseas markets.
The rupee resumed higher at Rs 49.94/95 per dollar on the Interbank Foreign Exchange, as against its previous close of 50.12/13 per dollar, and moved up further to Rs 49.90 per dollar before quoting at Rs 50.00/01 per dollar at 1030 hours.
The domestic currency moved in a range between Rs 49.90 and Rs 50.05 per dollar during morning deals.
Banks and exporters preferred to reduce their dollar positions on the back of dollar weakness in the New York market at the fag-end of last week, according to forex dealers.
The US dollar lost ground against most of its major rivals in the New York market last Friday, with the euro extending its gains after Italy's Senate approved a Budget law.
Meanwhile, the BSE benchmark Sensex gained 169 points, or 0.98%, in early trade.
