The rupee recovered 4 paise to 65.45 against the dollar at the interbank forex market on fresh selling of the greenback amid a higher opening of domestic equities.
A weak dollar against other currencies overseas supported the domestic unit, forex dealers said.
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On Monday, the rupee fell by 29 paise, or 0.44%, to close at a six-month low of 65.49 against the US currency on widening trade deficit concerns amid heightened geopolitical worries.
The benchmark BSE Sensex rose by 92.66 points, or 0.27%, to 34,398.09 in opening trade on Monday.
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