The premium for the forward dollar dropped further on persistent receipts by exporters.
The benchmark six-month forward dollar premium payable in June dipped to 155-157 paise from previous close of 160-162
Far-forward contracts maturing in December also slipped to 308-310 paise from 315-317
The RBI has fixed the reference rate for the US dollar at 53.7710 and for euro at 71.5670.
The rupee also bounced back against the pound sterling to 85.09 from Tuesday's close of 85.37 and also rebounded against the euro to 71.57 from 71.86.
It, however, declined further against the Japanese yen to 60.76 per 100 yen from last close of 60.65.