Mumbai: The rupee recovered by 7 paise to trade at 64.61 against the dollar in early session at the Interbank Foreign Exchange on Tuesday on increased selling of the US currency by exporters and banks.
Forex dealers said fresh foreign fund inflows and weakness in the dollar against a few currencies overseas supported the rupee.
Stocks hitting another record high in early trade also influenced the rupee uptrend, they added.
On Monday, the rupee had slipped from the six-week high level to close at 64.68 a dollar, down 13 paise on fresh demand for the American currency from banks and importers.
Meanwhile, the benchmark BSE Sensex advanced 122.44 points, or 0.36 per cent to hit all-time high of 33,853.63, breaching its previous intra-day record of 33,848.42 reached on Monday.