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At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted at 49.86 a dollar, a rise of six paise over the previous close of 49.92/93.
The domestic currency had ended 22 paise lower at 49.92/93 in choppy trade against the dollar on Wednesday.
Forex dealers said some dollar selling by banks and exporters at higher levels and mixed trend in Asian equities helped Indian rupee to edge higher.
Meanwhile, Japan's Nikkei was up 0.87 per cent, while Hong Kong's Hang Seng index shed 0.47 per cent in early trade on Thursday.
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