Stock markets opening with gains also boosted the domestic currency, dealers said.
The rupee had lost 14 paise to close at 65.44 per dollar on fresh dollar demand from importers.
In global trade, the US dollar had strengthened against major world currencies with the dollar index inching up by 0.08 per cent against a basket of currencies yesterday.
Meanwhile, the benchmark BSE Sensex recovered 147.50 points, or 0.50 per cent, to 29,315.18 points in early trade today.
PTI