In addition, dollar selling by banks and exporters and a higher opening in the equity market also supported the rupee.
Dealers said apart from gains in euro and the Asian currencies against the American currency overseas, higher opening in the domestic equity market and selling of dollars by exporters and some banks supported the rupee.
The rupee had lost 37 paise to close at 55.48 against the dollar yesterday on fresh dollar demand from importers and banks.
Meanwhile, the BSE benchmark index Sensex rose by 128.84 points, or 0.75 per cent, to 17,313.85 in early trade today.