Increased foreign funds inflow also supported the local unit. However, a lower opening in the equity market restricted the gains, forex dealers said.
Meanwhile, the BSE benchmark index Sensex fell by 43.58 points, or 0.24 per cent, to 18,461.80.
The rupee had edged up by 18 paise to close at 53.80 against the dollar in the previous session on sustained dollar sales by exporters.