Besides, a higher opening in the local equity market also supported the rupee, dealers said.
The domestic currency had ended 12 paise lower at Rs 55.80 against the dollar in yesterday's trade on fresh dollar demand from banks and importers amid a rise in May inflation.
Meanwhile, the BSE benchmark index Sensex recovered by 124.20 points, or 0.74 per cent, to 16,802.08 in early trade today.