The rupee rose marginally by 8 paise to 64.51 against the US dollar on Wednesday on increased selling of the greenback by banks and exporters, along with continued foreign funds inflow. Apart from selling by exporters and banks, weakness in the dollar against other currencies overseas made the rupee stronger.
A good start in domestic equities added force to the rupee upmove, traders added.
On Tuesday, the rupee had retreated from a two-week high against the US currency and ended lower by 6 paise at 64.59 on fresh bouts of dollar demand amid a Fed rate hike buzz.
Meanwhile, the benchmark Sensex rose 73.03 points, or 0.23 per cent, to 31,820.12 in early session.