Besides, a higher opening in the domestic equity market also supported the rupee but euro and yen's weakness against the dollar, capped rupee's gain, dealers said.
The rupee yesterday strengthened by 30 paise to end at two-week high of 54.39 on persistent capital inflows and dollar sales following government's decision to virtually deregulate diesel prices in its continuing economic reform agenda.
Meanwhile, the BSE benchmark index Sensex rose by 123.75 points, or 0.62 per cent, to 20,087 in early trade today.
