The rupee on Monday recovered by 17 paise to 54.90 against the dollar in early trade at the Interbank Foreign Exchange due to selling of the US currency by exporters and banks despite firm global cues. Besides, a higher opening in the domestic equity market also supported the rupee but euro and yen's weakness against the dollar, capped rupee's gain, dealers said.

The rupee had recorded its biggest slump in two months by plunging 57 paise to close at 55.07 in previous session on Friday.

Meanwhile, the BSE benchmark index Sensex rose by 68.72 points, or 0.35%, to 19,852.80 in early trade Monday.