The rupee recovered by three paise to 66.72 against the US dollar in early trade on Friday on mild selling of the US currency by exporters.

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Forex dealers said further weakness in dollar against other currencies overseas also supported the rupee but a lower opening in the domestic equity market, capped the gains.

The rupee had lost four paise to close at 66.75 in Thursday's trade due to fresh demand for the US currency from corporates and banks amid capital outflows from stock markets.

Meanwhile, the benchmark BSE Sensex fell by 42.53 points or 0.15% to 27,387.75 in early trade on Friday.