The rupee recovered by 42 paise to 73.15 against the US currency in early trade on Wednesday on fresh dollar selling by exporters amid easing crude oil prices and higher opening in the domestic equity markets.
At the Interbank Foreign Exchange, the rupee opened up at 73.18 and further advanced to quote 42 paise higher at 73.15 on increased selling of the American currency by exporters and banks.
The rupee sentiment also received a boost after a steep fall over 4 per cent in Brent crude prices Tuesday, dealers said.
Brent crude prices fell 4.37 per cent, biggest single day's fall in three months to USD 76.24 barrel. The benchmark oil was trading near USD 76.79 barrel in early trade on Wednesday.
On Tuesday, the local currency had ended almost flat at 73.57 against the US currency on Tuesday.
On a net basis, foreign funds sold shares worth Rs 340.35 crore, while domestic institutional investors bought shares to the tune of Rs 116.41 crore Tuesday, provisional data showed.
The benchmark BSE Sensex was trading sharply higher by 444.39 points or 1.31 per cent at 34,291.62 points in opening trade on Wednesday.