The rupee recovered from a two-week low by rising 15 paise to 66.46 against the dollar at the Interbank Foreign Exchange in early trade today on fresh selling of the US currency by banks and exporters.
Dealers said fresh selling of the American unit by exporters and banks supported the domestic currency but dollar's strength against other currencies overseas, capped the rupee's gain.
Rebound in domestic stock markets also helped rupee to strengthen against the dollar, they added.
The rupee had plunged by 47 paise to settle at two-week low of 66.61 against the American currency yesterday on heavy demand for the greenback from importers and banks largely impacted by global economic and political headwinds.
Meanwhile, the benchmark BSE Sensex rebounded by 143.41 points or 0.55 per cent to trade at 25,766.76 in early deals.