Reuters Market Eye - The rupee is off the day's high of 54.6150 and currently trading at 54.78/79 versus its previous close of 54.92/93 as oil firms step in to buy dollars.
The pair dropped sharply earlier in the session on the back of gains in regional risk assets.
Some traders say buying was also seen ahead of central bank's reference rate fixing, though gains are unlikely to sustain for too long.
All Asian currencies trading stronger compared to the dollar.
The Sensex was trading up 0.5 percent.
(Reporting by Swati Bhat )
