After two days of decline, the rupee on Tuesday staged a recovery, gaining 10 paise to 67.10 against the US dollar on fresh selling of the greenback by exporters and banks.
Robust capital inflows into domestic equities and weak dollar overseas against its major rivals boosted market sentiment.
The rupee largely traded in a narrow range in scattered deals as lack of definite cues restricted the momentum during the initial hour of trade.
The rupee had lost 29 paise in the previous two days.