The rupee rose by 5 paise to trade at fresh one-month high of 55.02 against the American currency in early trade today at the Interbank Foreign Exchange on persistent dollar selling by exporters and some banks.
Forex dealers said a higher opening in the equity market buoyed by Finance minister P Chidambaram's promise of bringing the economy back on track, also supported the rupee.
The rupee had strengthened by 45 paise to close at a one-month high of 55.07 against the dollar in Tuesday's trade, tracking a jump in local shares.
The domestic currency has appreciated by 77 paise in the past three days.
Meanwhile, the BSE benchmark index Sensex rose by 65.02 points, or 0.37%, to 17,666.80.