The rupee was up 31 paise at Rs 49.14 per US dollar in early trade today on fresh selling of the American currency by banks and exporters amid dollar weakness in overseas markets and an upswing in the domestic equity market.
The rupee resumed higher at Rs 49.17/18 per dollar on the Interbank Foreign Exchange, against its previous close of Rs 49.45/46 per dollar, and moved up further to Rs 49.14 before quoting at Rs 49.23/24 per dollar at 1030 hours.
The domestic currency hovered in a range between Rs 49.14 and Rs 49.30 per dollar during morning deals.
In the New York market, the dollar lost ground against the euro yesterday amid volatility in US stocks as traders took stock of reports that European officials are ironing out a broad plan to ensure a default by Greece will not spread to Euro zone's banking system or other sovereigns.