The rupee recovered 4 paise to 65.45 against the dollar at the interbank forex market on Tuesday on fresh selling of the greenback amid a higher opening of domestic equities.
A weak dollar against other currencies overseas supported the domestic unit, forex dealers said.
On Monday, the rupee had fell by 29 paise, or 0.44 per cent, to close at a six-month low of 65.49 against the US currency on widening trade deficit concerns amid heightened geopolitical worries.
The benchmark BSE Sensex rose by 92.66 points, or 0.27 per cent, to 34,398.09 in opening trade on Tuesday.