Reversing its three-day downward trend, the rupee recovered by 7 paise to 67.12 against the US dollar at the forex market in early trade on Tuesday on fresh selling of the American currency by exporters.

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Besides, the dollar's weakness against some currencies overseas supported the rupee but early losses in the domestic equity market restricted gains, dealers said.

The rupee had lost 14 paise to close at one-month low of 67.19 against the US currency in Monday's trade on increased dollar demand from importers and banks amid weak equity markets.

Meanwhile, the benchmark BSE Sensex was trading lower by 45.55 points or 0.16% at 27,939.99 in early trade on Tuesday.