Besides, the dollar's weakness against some currencies overseas and early gains in the domestic equity market supported the rupee, dealers said.
Yesterday, the rupee had lost 11 paise to end at 67.87 on fresh dollar demand from importers and banks. Heavy capital outflows besides near-term consequences of the Federal Reserve rate hike largely kept market sentiments shaky despite a dollar retreat.
Meanwhile, the benchmark BSE Sensex was trading higher by 53.28 points, or 0.20 per cent, at 26,427.98 in early trade today.