On Tuesday, rupee had skidded by 16 paise.The rupee rose 29 paise to 71.15 against dollar in early session on Wednesday on increased selling of American currency by exporters and banks amid a positive opening of domestic equity markets.At Interbank forex market, rupee opened higher at 71.19 and advanced further to quote 29 paise higher at 71.15 against dollar.
Besides, dollar falling against other currencies overseas on lingering worries about a global slowdown and continuing US-China trade tensions, supported Indian rupee, forex dealers said.
However, sustained foreign fund outflows capped gains, they added.On Tuesday, rupee had skidded by 16 paise -- its third straight session of loss -- to close at 71.44 against US dollar amid strengthening of greenback and heavy selling in domestic equities.
Foreign portfolio investors (FPIs) sold shares worth a net of Rs 78.53 crore, and domestic institutional investors (DIIs) were sellers to tune of Rs 84.15 crore Tuesday, provisional data showed.
Meanwhile, benchmark BSE Sensex rose 37.05 points, or 0.10 per cent, to 36,481.69 after rising to 36,521.47 in opening trade.