Mumbai: The rupee edged higher by three paise to 67.79 against the dollar at the Interbank Foreign Exchange in early trade today on increased selling of the US currency by banks and exporters.

Besides selling of the American unit by exporters and banks, dollar's weakness against some currencies overseas supported the rupee, dealers said. However, a weak trend at the domestic stock markets in early volatile trade capped the rupee's gains, they said.

The local currency had recovered by 17 paise to close at 67.82 against the American currency on Friday. Meanwhile, the benchmark BSE Sensex fell by 128.35 points or 0.49 per cent to trade at 25,912.35 in morning trade.