The Indian rupee was trading 16 paise higher at Rs 44.27 per dollar on the Interbank Foreign Exchange in the morning today, supported by a higher opening in the stock market and dollar weakness against other currencies overseas.

Forex dealers said dollar weakness against major currencies, including the euro, after the US Federal Reserve held key rates steady, and a higher opening on the bourses kept the sentiment firm, but some month-end dollar demand from importers limited the gains.