The rupee recovered by 8 paise to 72.61 against the dollar in early trade Wednesday on mild selling of the US currency by exporters amid easing crude oil prices.
Currency traders said weakness in the dollar against some global currencies overseas and a higher opening of the domestic equity market supported the rupee.
The rupee had lost 6 paise to close at 72.69 on Tuesday due to sustained demand for the American currency amid soaring crude prices.
In the international market, Brent crude slipped by 0.10 per cent to USD 81.18 per barrel after surging to USD 82.55 in Tuesday's trade.
Meanwhile, the benchmark BSE Sensex rose by 200.76 points or 0.55 per cent to 36,852.82 in early trade.
Foreign portfolio investors withdrew Rs 1,231.70 crore on a net basis from stock market on Tuesday, according to BSE data.