Mumbai: The rupee on Friday recovered from its 39-month closing low by rising 9 paise to 68.64 against the dollar in early trade at the Interbank Foreign Exchange market on fresh selling of the US currency by banks and exporters.
The Indian currency had yesterday hit a record intraday low of 68.86 but recovered towards the fag end to finally close at 68.73 -- still a 39-month closing low.
The rupee has taken a battering as the demonetisation after-effect played out and concerns grew about a possible Fed rate hike in the near-term.
Selling of dollars by banks and exporters today made the greenback weak against some currencies overseas which supported the rupee, forex dealers said.
Besides, higher opening of the domestic equity market also propped up the rupee, they added.
The rupee had dropped 91 paise, or 1.34 percent, in the last five trading days.
Meanwhile, the BSE benchmark Sensex recovered by 120.64 points, or 0.46 percent, to 25,980.81 in early trade today.