The Indian rupee remained steady at its overnight closing level of 49.31/33 a dollar in early trade today, buoyed by firm equity markets.
After a biggest single-day fall in over a decade, the domestic currency showed some stability as local stocks turned firm on back of strong global cue.
In fairly active trade at the Interbank foreign exchange (forex) market, the domestic currency resumed lower at 49.40/41 a dollar from its previous close of 49.30/31 a dollar and recovered to 49.10 level amid hopes of improved liquidity after inflation fell sharply to 8.98 per cent.
Forex dealers said the rupee drew support from a bounce in local stocks and some dollar selling by banks.
The rupee, however, expected to remain under pressure in the light of slowing economy and sustained capital outflow, they added.
The Indian benchmark Sensex was up 121 points or 1.27 per cent at 1015 hrs. Asian indices too were strong in early trade.