Besides, weakening of the dollar against yen and other currencies in overseas market following a poor manufacturing report and a higher opening in local stock markets also helped the rupee to recover, forex dealers said.
The rupee had lost 26 paise to close at new 11-month low of 56.76 in previous session fag-end dollar buying and capital outflows from local equities.
Meanwhile, the BSE benchmark Sensex rose by 112.57 points, or 0.57 per cent, to 19,723.05 in early trade today.