The rupee appreciated by 63 paise to close at a one-month high of 81.97 against the US dollar on Friday, as fresh foreign fund inflows and positive domestic equities supported investor sentiments.
Forex traders said positive PMI services data also boosted investor sentiments.
At the interbank foreign exchange market, the local unit opened at 82.28 against the American currency and finally settled at 81.97 against the greenback, registering a gain of 63 paise over its previous close of 82.60.
During the trading session, the rupee touched a high of 81.92 and a low of 82.35 against the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.19 per cent to 104.82.
Global oil benchmark Brent crude futures fell 0.55 per cent to USD 84.28 per barrel.
On the domestic equity market front, the 30-share BSE Sensex advanced 899.62 points or 1.53 per cent to end at 59,808.97, while the broader NSE Nifty rose 272.45 points or 1.57 per cent to 17,594.35.
Foreign Institutional Investors (FIIs) were net buyers in the capital market on Thursday as they purchased shares worth Rs 12,770.81 crore, according to exchange data.
With inputs from Agencies.
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