Increased capital inflows was expected as the stock markets may open high in line with other firming Asian markets.
The dollar's weakness against other currencies also sustained the Indian rupee.
At the Interbank Foreign Exchange (Forex) market, the domestic unit strengthened by 10 paise to quote at 48.41 a dollar over previous close.
On Wednesday, Sep 9, the Rupee ended 4 paise lower at 48.51/52.
Forex dealers said the rupee was strengthened as there was anticipation of increased capital inflows by foreign funds as markets may open firm in line with other Asian bourses, which are up nearly 1.5 per cent in morning trade on Thursday, Sep 10.