The Indian rupee advanced by another 5 paise to Rs 44.44 per US dollar in early trade today on persistent selling of the American currency by banks in view of dollar weakness overseas.
The rupee resumed higher at Rs 44.45/46 per dollar on the Interbank Foreign Exchange as against its previous close of Rs 44.49/50 per dollar and moved up further to Rs 44.44 per dollar before quoting at Rs 44.46/47 per dollar at 1030 hours.
The domestic currency hovered in a restricted range between Rs 44.44 and Rs 44.48 per dollar in morning trade.
Banks and exporters preferred to sell dollars at this level in view of the fall of the dollar in overseas market, a forex dealer said.
In the New York, the US Dollar lost ground against most of its rivals yesterday as appetite for risky assets revived, partly on hopes that European officials will make progress in containing the region's debt crisis.