Rupee gains 9 paise against US dollar in early trade

Rising for the fifth straight day, the rupee firmed up by another 9 paise to 71.22 against the dollar in opening trade Monday on increased selling of the American currency by exporters amid foreign fund inflows.

Forex dealers said weakness in the dollar against some other currencies overseas and foreign capital inflows in the domestic equity markets supported the rupee, but a lower opening of the domestic equity market capped the gains.

At the interbank forex exchange, the rupee started lower at 71.37 and softened to 71.44 against the US dollar, but regained strength to quote 9 paise higher at 71.22 against the last close of 71.31.

According to provisional exchange data, foreign portfolio investors (FPIs) bought shares worth a net Rs 843.73 crore on net basis on Friday.

On Friday, the rupee had ended 14 paise higher at 71.31 against the US dollar.

Meanwhile, the benchmark BSE Sensex fell 177.02 points, or 0.44 per cent, to 36,369.46 in early trade Monday.