The rupee is trading at a session high of 55.14-16 versus its 55.48-49 close on Wednesday, tracking a jump in the euro and gains in domestic shares.
The euro rallies on a Dow Jones report the European Financial Stability Facility would be able to buy Spanish bonds on the primary and secondary markets.
The Sensex closed up 0.55%.
However, traders say dollar demand from oil firms was preventing further falls in the USD/INR.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
