The rupee recovered 10 paise to trade at 67.31 against the US dollar in early trade today on fresh dollar selling by exporters and banks.
Forex dealers said weakness in the dollar against other currencies overseas supported the rupee.
A higher opening in the domestic equity market ahead of the RBI's monetary policy review added to the upside, the said.
Yesterday, the rupee had lost 19 paise to close at 67.41 against the US currency amid fresh bouts of dollar demand ahead of RBI's bi-monthly policy review.
Meanwhile, the benchmark BSE Sensex recovered by 56.48 points, or 0.19 per cent, at 28,391.64 in early session today.
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