New Delhi, Sept. 1 -- The rupee gained 16 paise to open at Rs.95 against the US dollar, as persistent intervention by the central bank and favourable near-term momentum helped offset pressure from rising US Treasury yields and higher oil prices.

The rupee rose 0.2% on Monday to a near four-week high, surprising most market participants.

A currency trader at a bank said that flow- and position-related dollar selling pushed the rupee towards the stronger end of its expected near-term range of Rs.95.00- Rs.95.80 per US dollar. The move was "definitely not expected", particularly with oil prices around $90 a barrel, the trader said, according to a Reuters report.

The trader added that the rupee could extend its gains at the open, supported...