The Indian rupee was up by 28 paise at Rs 49.12 per US dollar in early trade on Wednesday due to fresh selling of the American currency by banks and exporters on the back of dollar weakness in overseas markets.

The rupee resumed higher at Rs 49.13/14 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 49.40/41 per dollar, and moved up further to Rs 49.12 per dollar before quoting at Rs 49.18/19 per dollar at 1030 hours.

The domestic currency moved in a range between Rs 49.12 per dollar and Rs 49.20 per dollar during morning deals.

Fresh selling of dollars by banks and exporters in view of the lower dollar in overseas markets mainly boosted the rupee value against the dollar, a forex dealer said.

The dollar extended its losses in the New York market yesterday as the euro staged a recovery following a report that European Union officials are discussing coordinated action to recapitalise the continent’s banks.

Meanwhile, the Indian benchmark Sensex was up by 55 points, or 0.34 per cent, in early trade

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