The rupee recovered against the dollar in the interbank foreign exchange market on Wednesday recording a minor increase in value.

The local unit gained 17 paisas against the greenback which was trading at Rs281.72 at the closing of the market as against the closing of Rs281.89 the previous day.

A day earlier, the dollar had briefly lost value but ended the day after gaining three paisas to reach Rs281.89.

Since crossing the Rs300 mark a few months ago, the value of the dollar has slowly decreased in the face of a crackdown by the government against hoarding and smuggling.