Rupee up 42 paise against dollar in early trade

Besides, a higher opening in the local equity market and selling of dollar by exporters also supported the rupee, dealers said.

The domestic currency had weakened by 31 paise to close at a nearly two-week low of 55.94 a dollar in yesterday's trade, tracking a weak trend in stocks amid a smart rise in the dollar overseas as fears over EU crisis deepened further.

Meanwhile, the BSE benchmark index Sensex recovered by 105.75 points, or 0.61 per cent, to 17,338.30.