The rupee gained by 16 paise against the dollar on Wednesday tracking the positive domestic equity indices. The rupee opened lower at 46.97 and weakened to an intra-day low of 47.29. It ended the day at 46.99, up from the previous close of 47.15/16.

The rupee opened with a positive gap but depreciated tracking the weak euro and the negative global equity markets, said a dealer with a public sector bank.

However, dollar selling by exporters and the gain in the equity marketss helped the rupee appreciate against the greenback, he added. In the overseas markets, the dollar gained against the euro and the yen but fell against the pound. In the forwards market, there were alternate bouts of paying and receiving interest.

The six-month forward premium ended higher at 2.7 per cent (2.57 per cent) and the one-year premium closed at 2.25 per cent (2.14 per cent).