The rupee recovered by eight paise to 58.95 against the US currency in early trade today on the Interbank Foreign Exchange market on dollar selling by exporters.
Forex dealers said gains in other Asian currencies against the US dollar in the overseas market and a higher opening in the domestic equity market also supported the rupee.
The domestic currency had lost 10 paise to close at 59.03 against the dollar in yesterday's trade amid capital outflows linked to fall in equities.
Meanwhile, the 30-share BSE Sensex recovered by 82.67 points, or 0.34 per cent, to 24,316.82 in early trade today.
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