The Indian rupee recovered by 9 paise to 65.09 against the dollar in early trade on fresh selling of the US currency by exporters and banks.
Besides, the dollar’s weakness against major world currencies after poor data in China and Europe bolstered prospects the Federal Reserve will delay hiking its key interest rate strengthened the rupee sentiment.
The Indian rupee had fallen by 43 paise to close at 65.18 against the American currency yesterday on persistent dollar demand from banks and importers.
Domestic equity markets opened with losses which capped the rupee gains, they said.
The benchmark BSE Sensex fell by 133.25 points, or 0.49 per cent, to 26,713.28 in early trade.