Dollar selling by exporters and banks amid positive trends at domestic equity market helped the Indian rupee recover by 12 paise to 61.18 against the dollar in early trade on Thursday at the Interbank Foreign Exchange.
Forex dealers said a higher opening in the domestic equity market and a weak dollar against some currencies overseas also supported the gain in rupee.
The rupee had tumbled 53 paise to a fresh closing low of 61.30 against the dollar in Wednesday's trade on renewed dollar demand from importers and bearish local stocks.
Meanwhile, the BSE benchmark index Sensex recovered in morning trade on Thursday.