The rupee was trading at a session high of 55.14/16 versus its 55.48/49 close on Wednesday, tracking a jump in the euro and gains in domestic shares.
The euro rallied on a Dow Jones report that the European Financial Stability Facility would be able to buy Spanish bonds on the primary and secondary markets.
The BSE index closed up 0.55 per cent.
However, traders say dollar demand from oil firms was preventing further highs in the rupee.
