The rupee appreciated by 9 paise to 81.52 against the US currency in early trade on Friday as crude oil prices were little changed ahead of the oil cartel OPEC's meeting.
Expectations of FII investments into Adani Enterprises' Rs 20,000 crore FPO also supported the local currency.
The rupee increased against Wednesday's close of 81.61 to open higher at 81.51 on the interbank foreign currency market.
On the Republic Day holiday, the financial markets were closed.
The rupee fluctuated in early trade between 81.50 and 81.58. At 9:40 a.m., it was trading for 81.52 dollars.
The US dollar index, which measures the value of the dollar against a basket of six different currencies, increased 0.08 percent to 101.92.
Brent crude was up 0.34 percent at USD 87.77 per barrel.
Adani Enterprises' 20,000 crore FPO also opened on Friday. The company raised around Rs 6,000 crore from anchor investors.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Wednesday as they sold shares worth Rs 2,393.94 crore, according to exchange data.
With inputs from Agencies.
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