The rupee rose 30 paise to 62.81 against the dollar in early trade on Monday at the Interbank Foreign Exchange market on continued selling of the US currency by exporters amid a higher opening in the equity market.

Forex dealers said persistent capital inflows from foreign funds after RBI announced fresh steps to boost liquidity in the banking system also boosted the rupee value against the dollar but euro and yen's weakness overseas capped the rupee gains.

The rupee had gained 19 paise to close at 63.11 against the dollar on Thursday on smart recovery in local equities and selling of the US currency by exporters.

Forex and money markets remained closed on Friday on account of "Muharram"

Meanwhile, the BSE benchmark index Sensex rose sharply by 301.61 points, or 1.48 per cent, to 20,701.03 in early trade on Monday.

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Keywords: rupee ,dollar, Interbank Foreign Exchange ,market , US currency , exporters ,Forex dealers ,foreign funds, RBI,banking system , dollar, euro , yen, money markets,Muharram, BSE benchmark,Business news