The rupee rose by another 47 paise to hit a new 16-month high at 65.22 against the dollar in early trade on Thursday at the Interbank Foreign Exchange on sustained foreign fund inflows and increased selling of the US currency by exporters and banks.

Forex dealers said that besides a higher opening in domestic equity market, the dollar's weakness against other currencies overseas after the Federal Reserve raised interest rates supported the rupee.

On March 15, the rupee had continued its stellar run against the dollar to finish at a fresh 16-month high of 65.69 as exporters aggressively offloaded the US currency ahead of the Fed meet outcome.

Meanwhile, the benchmark BSE Sensex shot up by 206.40 points, or 0.70 per cent, to trade at 29,604.51 in opening trade on Thursday.