The rupee rose by 11 paise to Rs 55.42 against the US dollar in early trade today on the Interbank Foreign Exchange as the American currency weakened against euro overseas.
Dollar selling by exporters and banks also supported the rupee, forex dealers said.
Euro gained against the dollar overseas ahead of a European Central Bank meeting during which officials were expected to announce fresh measures to battle the Eurozone debt crisis. It is again nearing the two-month high level against dollar, hit last week.
The rupee had lost 1 paisa to close at 55.53 against the Greenback yesterday on capital outflows from shares and a stronger American currency overseas.
Meanwhile, the BSE benchmark Sensex fell by 60.13 points, or 0.35 per cent, to 17,324.25 in early trade today.