The rupee recouped by 6 paise to 63.45 against the US dollar in early trade On Tuesday on fresh selling of the American currency by exporters and banks amid early gains in stocks.
Forex dealers said persistent inflows of foreign funds and weakness in the dollar against other currencies overseas supported the domestic unit.
On Monday, the rupee had retreated from its near three- year high and ended lower by 14 paise at 63.51 against the US currency on fresh bouts of dollar demand amid concerns over the sluggish outlook for economic growth.
Meanwhile, the benchmark BSE Sensex rose 134.73 points, or 0.39 per cent, to quote at an all-time high of 34,487.52 in opening session.