The rupee resumed higher at 55.54 per dollar against the last closing level of 55.66 at the Interbank Foreign Exchange (Forex) Market.
It moved in a range of 55.50-55.62, before quoting at 55.56 at 1040 hrs.
Persistent selling of dollars by banks and exporters on the back of weakness of the American currency in New York market mainly boosted the rupee value, a forex dealer said.
In New York market, the US dollar fell against the euro yesterday pushing the shared currency to its highest level in more than two months, after European Central Bank President Mario Draghi said the ECB is prepared to buy sovereign bonds of countries.
Meanwhile, the Indian benchmark Sensex shot up by 313 points, or 1.81 per cent, at 1045 hrs.