The Indian rupee recovered by eight paise to trade at 67.51 against the US dollar at the Interbank Foreign Exchange in early trade on Monday. There was fresh selling of the US currency by banks and exporters.
However, a weak trend at domestic stock markets in early volatile trade capped the rupee's gains, they said.
The local currency had dipped by 30 paise to close at fresh 28-month low of 67.59 against the American currency on Friday on demand for the greenback from importers in view of persistent foreign capital outflows amid sharp fall in equities.
Meanwhile, the Sensex was trading 51 points lower at 24,403 points at 11.42 am.