The rupee on Thursday rose by 15 paise to 54.06 against the dollar in early trade on the Interbank Foreign Exchange as the US currency weakened against euro overseas amid a higher opening in the domestic equity market.

The rupee on Wednesday rose to one-and-a- half-month high of 53.77 but erased gains to close seven paise down at 54.21 against the dollar on weakness in domestic equities amid strong dollar overseas.

The rupee on Wednesday gained 24 paise to trade at fresh one-month high of 53.90 in early trade at the Interbank Foreign Exchange market on dollar selling by exporters and increased capital inflows.

Snapping a two-day downtrend, the rupee on Tuesday rose by a staggering 48 paise to end at a one month high level of 54.14 against US dollar on robust FII inflows and hopes of lower CAD due to falling oil prices.

The rupee on Tuesday gained 19 paise to 54.43 against the dollar in early trade at the Interbank Foreign Exchange on increased selling of the US currency by exporters.

Petrol price was on Monday cut by Re 1 per litre, effective from Monday midnight -- the third reduction in rates in one month. The price cut, which was made possible because of fall in international oil prices, excludes local sales tax or VAT.

Notwithstanding a partial recovery on lower-than-expected headline inflation, the rupee on Monday closed down by 10 paise at one-week low of 54.62 on sustained dollar demand from importers and capital outflows.

With inflation declining to below 6 percent in March after over three years, Planning Commission on Monday exuded confidence that the price situation would improve further in the coming months.

Declining price of vegetables pulled down inflation to over three-year low of 5.96 percent in March, which may prompt the Reserve Bank to consider a rate cut in its annual monetary policy next month.

The rupee lost 23 paise to trade at 54.75 against the dollar in early trade on Monday on the Interbank Foreign Exchange market amid weak stock markets.