In early morning trade on Thursday, the rupee was higher by 9 paise to 78.23 against the US dollar after recovering from its record low.
The rupee opened at 78.26 against the American dollar, then went higher to 78.23, a rise of 9 paise from the previous close.
The rupee fell by 19 paise to a new all-time low of 78.32 against the US dollar on Wednesday.
The dollar index, which gauges the strength of the dollar against a basket of six currencies, was trading 0.0 per cent lower at 104.14, down 0.05 per cent.
Sriram Iyer, Senior Research Analyst at Reliance Securities, said the dollar went up against the dollar this Thursday morning and was tracking a further pullback in crude oil prices.
The global oil benchmark of Brent crude futures fell 2.17 per cent to USD 109.32 per barrel.
As per the minutes of the latest Monetary Policy Committee MPC meeting released on Wednesday, all six members of the MPC, including the RBI Governor, expressed concern over continued high inflation and stressed that the central bank's aim would be to bring down the rate of price rise within the target range.
On the domestic equity market front, the Sensex was trading 305.1 points or 0.59 per cent higher at 52,127. The NSE Nifty advanced by 95.00 points or 0.62 per cent to 15,508. Foreign institutional investors offloaded shares worth Rs 2,920 and remained net sellers in the capital market on Wednesday. According to stock exchange data, 61 crore were reported to have been generated.