The Indian rupee was up 17 paise to 77.17 against the US dollar on Wednesday, as the US currency retreated from its elevated levels.
The domestic currency opened at 77.24 against the US dollar at the interbank foreign exchange and gained ground further at 77.17, registering a rise of 17 paise from the last close.
The rupee had settled at 77.34 against the American currency on Tuesday, while on Monday it had declined by 54 paise to close at a record low of 77.44 against the US dollar.
The dollar index was trading at 103.85, down 0.06 per cent.
According to the Forex traders, firm crude oil prices, muted domestic equities and continued foreign fund outflows could restrict the rupee's gain.
The Sensex 30 share was trading 27.61 points or 0.05 per cent higher at 54,392. The NSE Nifty was 46, while the broader NSE Nifty advanced 8.30 points or 0.05 per cent to 16,248.