Besides, a higher opening in the domestic equity market and euro and yen's strengthening against the American currency overseas also supported the rupee, dealers said.
The rupee had lost 16 paise to close at 54.36 against the dollar yesterday on heavy demand for the American currency from banks and importers.
Meanwhile, the BSE benchmark index Sensex rose marginally by 18.29 points, or 0.09 per cent, to 18,864.55 in early trade today.