Rupee up 17 paise vs dollar at 59.55

The rupee today recovered by 17 paise to 59.55 in early trade at the Interbank Foreign Exchange on dollar selling by exporters and some banks.

A higher opening in the domestic equity market and a weak dollar against euro and yen overseas after poor US housing data raised the likelihood that the Federal Reserve would keep its stimulus programme in place for some time, also supported the rupee, forex dealers said.

The rupee had lost 37 paise, its biggest drop in two weeks, to close at 59.72 yesterday following month-end dollar demand from oil importers and some custodian banks coupled with capital outflows.

Meanwhile, the BSE benchmark index Sensex recovered by 173.38 points, or 0.86%, to 20,332.50 in early trade today.