The rupee strengthened by 16 paise to a fresh two-month high of Rs 50.57 per US dollar in early trade on the Interbank Foreign Exchange today on increased foreign capital inflows.
Dealers said increased foreign capital inflows into the Indian market and dollar losses against other currencies in overseas markets mainly provided support to the rupee.
The rupee had surged by 64 paise to close at two-month high of Rs 50.73/74 against the American currency yesterday on strong rally in equities and continued dollar selling by exporters.
Meanwhile, the BSE benchmark Sensex rose by 43.93 points, or 0.26 per cent, to 16,509.98 in opening trade today.
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