Rupee gains 14 paise against US dollar in early trade

The Indian rupee strengthened by 14 paise to Rs 44.04 against the US dollar in early trade on the Interbank Foreign Exchange on Monday, boosted by a higher opening in the stock market.

However, dollar gains against the euro and other currency rivals overseas capped the rupee's rise.

The rupee ended 11 paise lower at Rs 44.18/19 against the dollar in the previous session on Friday on heavy demand for the American currency amid dollar firmness overseas and weak local equities.

Forex dealers said a higher opening in the stock market mainly kept rupee sentiment firm, but dollar gains against the euro and other currencies overseas - after US President Barack Obama announced that top American lawmakers have reached an agreement to raise the US debt ceiling and reduce the budgetary deficit - restricted the rupee's rise.

The Bombay Stock Exchange benchmark Sensex shot up by 242.87 points, or 1.33 per cent, to 18,440.07 in opening trade on Monday.