Rupee recovered by 10 paise to 68.03 against the US dollar in early trade on Friday. The rupee resumed lower at 66.50 as against the last closing level of 66.47 per dollar at the Interbank Foreign Exchange (Forex) market on initial dollar demand from banks and importers.

However, it recovered from initial losses to 66.33 on fresh selling of dollars by banks and exporters on the back of sharp recovery in the equity market before ending at 66.44, showing a gain of 3 paise or 0.05%.

It has gained by 22 paise or 0.33% in last two trading days.The dollar index was down by 0.0053 per cent against a basket of six currencies in the late afternoon trade.

The local unit had lost 5 paise to close at one-week low level of 68.13 in Thursday's trade.

The RBI fixed the reference rate for the dollar at 66.3925 and euro at 75.7538.

The benchmark BSE Sensex fell 80.82 points, or 0.30 per cent, to 27,227.78 in early trade on Friday.