The rupee appreciated by 21 paise to 61.62 in early trade at the Interbank Foreign Exchange market on Thursday on selling of US currency by exporters.
Besides, a higher opening in the domestic equity market also supported the rupee.
The rupee had lost 28 paise to close at 61.83 against the dollar in the last session on Tuesday.
The forex market remained closed on Wednesday on account of 'Id-ul-Zuha' (Bakr Id).
Meanwhile, the BSE benchmark Sensex recovered by 32.86 points, or 0.16 per cent, to 20,580.48 in early trade on Thursday.