Traders said losses in the domestic share market and other Asian currencies helped the dollar.
Some dealers cited non-deliverable forwards-related dollar buying in the domestic market as one of the key reasons for the rupee's weakness.
The three-month NDF (non-deliverable forwards) traded at 57.24 compared with its onshore counterpart which stands at 57.26.
Dealers said month-end dollar demand from oil companies and other importers is also likely to boost the dollar.
The dollar gained broadly in early Asian trade on Wednesday after robust economic data boosted Treasury yields and raised expectations that the Fed may make an early exit from its easing scheme, making the greenback more attractive. (Read: How a weaker rupee affects you)
(With inputs from Reuters)