Forex dealers said a higher opening in the equity market and yen's gains against the US currency overseas also supported the local unit.
The rupee had closed four paise down at 53.81 against US dollar in yesterday's trade, following late weakness in local stocks and sustained demand of the American currency.
Meanwhile, the BSE benchmark Sensex recovered by 72.40 points, or 0.36 per cent, to 20,053.97 in early trade today.