Rupee in Thursday's is trading higher at 71.94 versus previous close of 72.12 per dollar.
The day started with gains in the rupee, which touched an high of 71.86 at the opening and later dropped.
The government on Wednesday held a meeting to take to infrastructure reforms. Also, on the banking front, banks have been advised to shift the floating rate loans to external benchmark for better transmission of rates.
Asian stocks have gained ground as tensions have receded in the UK and Hong Kong.
Meanwhile, indices in India are set to open higher given the indications of the SGX Nifty.