The rupee gained 15 paise to 55.43 against the U.S. dollar in early trade on Tuesday at the Interbank Foreign Exchange as the American currency weakened against euro overseas.
Dollar selling by exporters and banks amid a higher opening in the domestic equity market also supported the rupee, dealers said.
Euro rose against the American currency overseas ahead of the European Central Bank meets on August 2, 2012 they added.
The rupee had lost 24 paise to close at 55.58 against the dollar on Monday on heavy month-end dollar demand form oil importers even as stock markets had gained 300 points.
Meanwhile, the BSE benchmark index Sensex rose by 55.26 points, or 0.32 per cent, to 17,198.94 in early trade on Tuesday.