Mumbai: The rupee advanced 12 paise to 64.26against the US dollar in early trade at the Interbank Foreign Exchange today on increased selling of the greenback by banks and exporters besides a sustained foreign fund inflow.

Forex dealers said that apart from heavy selling by exporters and banks, weakness in the dollar against other currencies overseas supported the rupee. Further, a higher opening in the domestic equity market added to the rupee upmove, they added.

Yesterday, scripting its biggest single-day gain in four weeks, the rupee had rallied by 25 paise to close at 64.38 a dollar on heavy selling of the US currency. The forex market also took inspiration from domestic equities' record-setting spree. Meanwhile, the benchmark BSE Sensex rose 48.76 points, or 0.16 per cent, to 30,299.74 in early trade.