Besides, fresh selling of the US dollar by exporters supported the rupee, but a lower opening in the domestic equity market capped the gains.
In restricted activity, the rupee was steady at 63.82 against the American currency in late morning trade owing to alternate bouts of demand and supply transactions of dollars.
The rupee resumed higher at 63.77 from Tuesday’s closing level of 63.82 at the Interbank Foreign Exchange (Forex) market on mild selling of dollars by banks and exporters.
However, it failed to maintain initial gains and was stable at its overnight level of 63.82 per dollar at 1100 hrs.
The rupee hovered in a range of 63.75 and 63.84 during the morning deals.
At the overseas, the US dollar was broadly lower in early trade as hopes for progress in Greek debt talks and a huge spike in European yields combined to give the euro its biggest gain in three months.
The dollar index, which measures it against a basket of six major currencies, was down at 95.897 having shed 1.5 per cent on Tuesday in its biggest one-day drop since July 2013.
Crude oil prices fell in early Asian trade as oversupply weighed on markets, with OPEC not expected to announce a production cut at its meeting on Friday.
Meanwhile, the benchmark BSE Sensex was trading lower by 263.05 points or 0.97 per cent at 26,925.33 at 1130 hours.