The rupee gained on some selling by state-run banks, said dealers. The pair was trading at 54.08/10 after falling to 54.21, versus the previous close of 53.96/97.
The pair saw some early buying by a large private refiner while some defence-related buying also seen, they said.
State-run and custodial banks were on the sell side, some said.
The yen drifts off a one-week high against the dollar on Wednesday thanks to a general improvement in risk appetite, while the euro hovers above last week's lows.
