Forex dealers said strengthening of euro against the dollar overseas and a higher opening in the equity market also supported the rupee.
The local currency had gained 23 paise to close at 53.86 yesterday on dollar selling as Economic Survey strengthened forex market's expectations of Union Budget taking fiscally prudent steps to attract foreign investors.
Meanwhile, the BSE benchmark index Sensex rose by 162.86 points, or 0.85 per cent, to 19,315.27 in early trade today.