The rupee resumed higher at 61.01 per dollar as against the last closing level of 61.22 at the Interbank Foreign Exchange market. It improved further to 60.90 before quoting at 60.94 per dollar at 1035 hrs.
The domestic currency hovered in a range of 60.90-61.10 per dollar during morning deals.
The rupee had lost 28 paise to close at 61.22 yesterday against the US currency due to sustained dollar demand from importers.
Industrial output entered positive territory and recorded a 0.1 per cent growth in January after contracting for three months in a row, while February retail inflation slowed to a 25-month low of 8.10 per cent from 8.79 per cent in January.
Meanwhile, the benchmark BSE Sensex rose by 121.70 points, or 0.56 per cent, to 21,977.92 at 1035 hrs.
Live: BSE Sensex