Increased selling of the dollar by banks and exporters amidst sustained inflows of foreign funds supported the rupee, dealers said.
Besides, a higher opening in the domestic equity market also helped the rupee.
Dollar's gain against other currencies overseas, however, capped the rise, they added.
The rupee fell by nine paise to end at 60.17 against the dollar in yesterday's trade following month-end demand from importers for the American currency.
Meanwhile, the benchmark BSE Sensex rose 103.87 points, or 0.41%, to trade at 25,517.65 in early trade.