Mumbai: The rupee appreciated by another 16 paise to 64.73 against the dollar in early trade today amid sustained selling of the American currency by exporters and banks.

Forex dealers said that apart from weakness in the dollar against major currencies overseas, robust foreign fund inflows supported the rupee.

According to the provisional exchange data, FPIs invested Rs 3,582.50 crore on net basis in equities yesterday. Stock markets opening lower however restricted the rupee gains, a dealer said.

Yesterday, the rupee had gained 18 paise against the US dollar to end at a fresh one-week high of 64.89 at the interbank foreign exchange on late selling of the greenback by exporters and corporates.

Meanwhile, the benchmark BSE Sensex retreated from record highs, falling by 207.44 points or 0.62 per cent to 32,835.06 in early trade today.