Mumbai, July 13 - The rupee gained 42 paise to 55.52 against the US dollar in early trade today at the Interbank Foreign Exchange market as the American currency weakened against Asian currencies overseas.

Besides, a higher opening in the local equity market and selling of dollar by exporters also supported the rupee, dealers said.

The domestic currency had weakened by 31 paise to close at a nearly two-week low of 55.94 a dollar in yesterday's trade, tracking a weak trend in stocks amid a smart rise in the dollar overseas as fears over EU crisis deepened further.

Meanwhile, the BSE benchmark index Sensex recovered by 105.75 points, or 0.61 per cent, to 17,338.30. PTI