Dealers said besides dollar selling by some banks and a higher opening in equity market, gains in the euro overseas against the American currency supported the rupee.
The rupee had plunged against the dollar to a historic low of 54.56 before closing at 54.50 in yesterday's trade, a lowest closing ever.
Meanwhile, the 30-share BSE Sensex recovered by 151.56 points, or 0.94 per cent, to 16,181.65 in early trade today.
