The rupee on Thursday rose 14 paise to 53.37 against the US dollar in early trade at the Interbank Foreign Exchange on selling of the American currency by exporters and banks.
Besides, a higher opening in the equity market also supported the rupee, forex dealers said.
They, however, said euro's weakness against the US currency overseas on fresh concerns over the eurozone debt crisis, capped the rupee's gains.
The BSE benchmark Sensex recovered by 77.13 points, or 0.4%, to 18,709.30 in early trade on Thursday.
The rupee had lost 15 paise to close 53.51 on Wednesday on fresh demand for the US dollar from importers.