At 4.23 pm local time, the rupee was trading at 55.72 against the dollar at the Interbank Foreign Exchange market today as the American currency weakened against euro overseas.
Besides, dollar selling by exporters and banks and a higher opening in the domestic equity market also supported the rupee, forex dealers said.
They added that the euro gained against the dollar overseas after comments from German Chancellor Angela Merkel reasserting her desire to save the Euro Zone.
The rupee had lost 10 paise to close at a two-week low of 55.75 against the greenback yesterday due to weakness in local shares and sustained demand for dollar from importers.