At 10:26 a.m. (0506 GMT), the partially convertible rupee was at 45.2375/2450 per dollar after rising to 45.1850, from Tuesday's closing of 45.24/25 per dollar.
"We are seeing bidding from gold and oil companies here and it may be rangebound at 45.12/30," said Vikas Chittiprolu, a senior forex dealer with Andhra Bank.
Indian shares climbed more than 1 percent in early trade on Wednesday, tracking small gains by Asian peers. Energy major Reliance Industries and financial stocks led the rise.
Most Asian currencies were stronger than the US dollar on Wednesday. See for a snapshot.
The index of the dollar against six major currencies was up 0.21 percent at 76.490 points compared with 76.908 points at end of trade in the local forex market.
The one-month onshore forward premium was at 30.50 points unchanged from Tuesday's close.
The one-month offshore non-deliverable forward contracts were quoted at 45.53, weaker than the onshore spot rate.
In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX, and the United Stock Exchange were all at 45.3675, with the total traded volume at about $1.4 billion.