The rupee rose marginally by 4 paise to 53.68 against the dollar in early trade Thursday on the Interbank Foreign Exchange as the American currency weakened against euro overseas amid a higher opening in the domestic equity market.
Forex dealers said euro gained against the US dollar overseas on speculation Greece will be given more time to put in place reforms to help rein in its huge public debt.
However, month-end dollar demand from oil importers restricted the gains, they added.
Meanwhile, the BSE benchmark Sensex recovered by 31.51 points, or 0.16 per cent, to 18,741.53.
The rupee had ended lower by 25 paise at 53.72 against the US dollar in the previous session on Tuesday amid fresh dollar demand, mainly from oil refiners.
The forex market remained closed on Wednesday on account of Dussehra.