The rupee on Monday appreciated by nine paise to Rs 54.08 against the US dollar on the Interbank Foreign Exchange (Forex) market in early trade on increased foreign fund flows amid firm local equities.
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Forex dealers said euro's gains against the American currency in the overseas market also supported the rupee.
The local unit had closed higher at 54.17 against the dollar on Friday.
Meanwhile, the 30-share BSE Sensex rose by 65.88 points, or 0.34%, to 19,382.89 in early trade on Friday.
Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.
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