The rupee recovered marginally by four paise to 59.34 against the US dollar in early trade on Wednesday at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters.
However, the dollar's strength against other currencies overseas, capped the rupee's gain.
The rupee fell by 23 paise to close at 59.38 in Tuesday's session amidst the RBI announcing a cut in SLR that is expected to release nearly Rs 40,000 crore into the markets.
Forex dealers said fresh selling of the American currency by exporters and a higher opening in the domestic equity market helped the local currency to recover.
Meanwhile, the 30-share BSE Sensex rose by 67.31 points, or 0.27%, to 24,925.90 in early trade on Wednesday.