The rupee recovered from its near 1-month low to trade 32 paise higher at 68.06 against the US dollar in early session today on fresh selling of the American currency by banks and exporters.
Forex dealers said selling of the greenback by banks and exporters supported the rupee but the dollar's strength against other currencies overseas capped the gains.
Further, investor sentiment turned positive following higher opening of the domestic equity market, they added.
Yesterday, the rupee had nosedived 39 paise to end at a near one-month low of 68.38 against the US dollar as escalating trade threats between the US and China dented sentiment.
Meanwhile, the benchmark BSE Sensex was trading 130.41 points, or 0.37 per cent, higher at 35,417.15 in opening trade today.
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