Rupee up 16 paise against dollar in early trade

The rupee edged higher by 16 paise to over two-week high of 59.53 against the US dollar at the Interbank Foreign Exchange market today on increased selling of the US currency by exporters amid capital inflows.

Forex dealers said a higher opening in the domestic equity market and strengthening of the euro against the US dollar overseas also supported the rupee.

The rupee appreciated by 38 paise -- its biggest single-day rise in seven weeks -- to close at 58.69 in yesterday's trade on optimism that the budget next week would have strong measures to put finances and the economy back on track.