The Indian rupee today appreciated by 16 paise against the US currency in opening trade, following selling of dollars by banks and exporters on expectations of further recovery in the domestic bourses in line with firming Asian markets.
The greenback's weakness against other major currencies overseas also supported the Indian unit.
At the Interbank Foreign Exchange (Forex) market, the rupee was quoted higher at 51.70 a $, a gain of 16 paise over the previous close of 51.86/87.
Dealers attribute firmness in the rupee to recovery in the equity markets, raising hopes of fresh capital inflows by foreign funds.