Reuters Market Eye - The rupee is at 54.47/48 after hitting 54.4625, its highest since April 3.
The pair is seen moving in a 54.30 to 54.60 range during the session.
Traders say gains in regional share and currency markets are hurting the dollar.
All Asian currencies trading stronger compared to the dollar.
The BSE Sensex is up 0.2 percent in early trade.
Reporting by Swati Bhat