The rupee recovered marginally by 3 paise to 67.42 against the dollar in early trade today at the forex market on fresh selling of the US currency by banks and exporters amid foreign fund inflows.
Forex dealers said a higher opening in the domestic equity market and a weakening dollar against some currencies overseas made the rupee stronger.
The rupee had dropped 18 paise to close at 67.45 on Tuesday on fresh dollar demand from banks and importers on the back of a higher greenback overseas amid a fall in equities.
The forex market remained closed yesterday on account of Eid-Ul-Fitr.
Meanwhile, the benchmark BSE Sensex rose 43.10 points, or 0.15 per cent, to 27,209.97 in early trade today.