The rupee gained traction in the final session of 2016-17 as it strengthened by 12 paise to 64.80 against the US dollar in early trade on increased selling of the American currency amid continued foreign inflows.

Besides increased dollar selling by banks and exporters, the dollar’s weakness against other currencies overseas supported the rupee sentiment

However, a weak domestic equity market capped the rupee’s gain, traders said.

The local currency had closed with a mere loss of 1 paisa at 64.92 yesterday.

Meanwhile, the benchmark BSE Sensex fell 72.53 points or 0.24 per cent to 29,574.89 in early trade.