The rupee recovered by 17 paise to 64.87 against the dollar in early trade on mild selling of the greenback by exporters and a firm domestic equity market.
According to forex dealers, the US dollar’s strength against major global currencies, however, capped the rupee’s gains.
Yesterday, the rupee had plunged by 28 paise to end at a new three-month low of 65.04 against the US dollar even as importers actively covered unhedged positions amid fears over Fed rate hike.
Meanwhile, the benchmark BSE Sensex recovered 107.09 points or 0.31 per cent to 33,926.59 in early trade.