Forex dealers said euro's gain against the US dollar ahead of a German court ruling on the eurozone's bailout fund and a higher opening in the equity market supported the rupee.
The BSE benchmark Sensex rose by 85.76 points, or 0.48 per cent, to 17,938.71 in early trade today.
The rupee had ended higher by 10 paise at 55.34 against the US dollar in the previous session on the back of robust capital inflows and a weak dollar overseas.