The rupee recovered by 10 paise to 66.38 against the US dollar in early trade, on increased selling of the American currency by exporters.
A weak dollar in overseas markets also supported the rupee sentiment, dealers said, adding that equity markets opening lower, however, capped the gains.
The rupee had lost 34 paise to close at one-week low of 66.48 against the US dollar yesterday, on persistent month-end demand for the American currency from importers.
The benchmark BSE Sensex slipped below the crucial 26,000 mark by plunging 298.81 points, or 1.13 per cent, to 25,984.81 in early trade today.
