The rupee is trading at 55.15/16 versus its previous close of 55.34/35 and close to 55.14, a three-week high reached in opening deals.
Gains in the domestic share market weigh on dollar/rupee. The Sensex provisionally closes at a 7-month closing high, up 0.9 percent on day.
Euro gains after a German court's approval to the euro zone's new rescue fund, further hurting the dollar.
However, some mild dollar demand from oil firms is supporting the pair and preventing a further fall, traders say.
