The rupee recovered by 9 paise to 65.09 against the dollar in early trade on fresh selling of the U.S. currency by exporters and banks.
The rupee had fallen by 43 paise to close at 65.18 against the American currency on Tuesday 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.