The rupee stayed on upward track for the second straight session and gained 6 paise to 83.28 against the US dollar in early trade on Wednesday amid a weak American currency and foreign fund inflow in the domestic equities.
Positive sentiment in the domestic equity markets and easing crude oil price also boosted the Indian currency, said Forex traders.
At the interbank foreign exchange, the rupee opened stronger at 83.30 against the dollar but slipped to 83.33. It later traded at 83.28 against the greenback, up 6 paise over its previous close.
On Tuesday, the rupee rebounded from record low levels and settled 6 paise higher at 83.34 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.13 per cent at 102.61.
Global oil benchmark Brent crude futures declined 0.04 per cent to $81.65 per barrel.
On the domestic equity market front, the BSE Sensex was trading 266.56 points or 0.40 per cent higher at 66,440.76, while the broader NSE Nifty rose 86.10 points or 0.43 per cent to 19,975.80.
Foreign institutional investors were net buyers in the capital market on Tuesday as they purchased shares worth ₹783.82 crore, according to exchange data.