The rupee ended marginally higher by two paise at 62.24 against the American currency on fresh selling of dollars by banks and exporters due to weakness of greenback in the international market.
Sustained foreign capital inflows into equity markets also boosted the rupee against dollar, a forex dealer said.
The domestic currency resumed lower at 62.31 per dollar as against the last closing level of 62.26 at the Interbank Foreign Exchange (Forex) market and dropped further to 62.36 on some dollar demand from banks and importers.
However, the rupee recovered to 62.22 per dollar before concluding at 62.24 on fag-end selling of dollars by banks and exporters, showing a small gain of two paise or 0.03%.
The domestic unit hovered in a range of 62.22 per dollar and 62.36 per dollar during the day.
It had dropped by seven paise or 0.11% on Tuesday.
In the global market, the greenback has tumbled 3.7% against the euro since touching a 12-year high last month amid speculation that the Federal Reserve will delay raising interest rates.
The dollar index, a gauge of six major global rivals, was down by 0.54% on Wednesday.
Oil prices fell more than a per cent in the Asian trade in the morning as data showed a larger-than-expected weekly build in the US stockpiles and Saudi Arabia reported record output in March.