The rupee on Tuesday strengthened by 19 paise to 54.29 against the dollar in early trade at the Interbank Foreign Exchange (forex) market on selling of the US currency by exporters amid foreign capital inflows.

Besides, a higher opening in the domestic equity market and strengthening of euro against the dollar overseas supported the rupee, forex dealers said.

Meanwhile, the BSE benchmark index Sensex recovered by 194.08 points, or 1%, to 19,603.77 in early trade.

The rupee had shed one paisa to close at 54.48 against the dollar in the previous session on the back of recovery in the American currency against other currencies overseas.