The Rupee recovered 16 paise to 66.69 against the US Dollar in early trade on Friday at the Interbank Foreign Exchange market on fresh selling of the American currency by exporters.

Besides increased foreign fund inflows also supported the Rupee but a lower opening of the domestic equity market and the Dollar’s strength against some currencies overseas capped the gains forex dealers said.

On Thursday the Rupee fell sharply by 39 paise — its biggest single-day fall in three months – against the US Dollar to close at 66.85 after the Army announced that it had carried out quot;surgical strikesquot; on terror launch pads in Pakistan across LoC.

The benchmark BSE Sensex fell by 107.72 points or 0.39 per cent to 27719.81 in early trade on Friday.