Besides, a higher opening in the domestic equity market and euro's gains against the American currency overseas also supported the rupee, dealers said.
The rupee had lost 52 paise to close at 54.08 against the dollar yesterday on heavy month-end dollar demand from importers and corporates.
Meanwhile, the BSE benchmark index Sensex rose marginally by 13.53 points, or 0.07 per cent, to 18,649.35.
