In restricted trading, the rupee ended marginally higher by three paise to 63.61 against the American currency on mild selling of dollars by banks and exporters on hopes of foreign capital inflows into equities.
The rupee opened lower at 63.66 per dollar at the Interbank Foreign Exchange as against Tuesday's closing level of 63.64 and dropped further to 63.68 on initial dollar demand from banks.
However, it recovered afterwards to 63.55 on selling of dollars by banks and exporters on the back of rise in equity market before ending at 63.61 per dollar, disclosing a marginal gain of 3 paise or 0.05%.
It has gained by 23 paise or 0.36% in two days. The domestic unit moved in a range of 63.55 and 63.68 through Wednesday.
The dollar index was trading higher by 0.35% against its major global rivals on Wednesday.
Overseas, the US dollar was higher in early Asian trade while the euro got off to a cautious start with Greece's fate still hanging in the balance.
Oil prices eased in Asian trading Wednesday after Greece missed a 1.5-billion-euro ($1.7-billion) payment to the International Monetary Fund.
US benchmark West Texas Intermediate for August delivery fell 68 cents to $58.79 while Brent crude was down 58 cents at $63.01.
Meanwhile, the Indian benchmark Sensex rose further by 240.04 points or 0.86%.