The rupee appreciated 25 paise to 82.63 against the US dollar in early trade on Friday as the American currency retreated from its elevated levels.
At the interbank foreign exchange, the domestic unit opened at 82.85 against the dollar, then gained ground to touch 82.63, registering a rise of 25 paise over its previous close.
On Thursday, the rupee settled 8 paise lower at 82.88 against the US dollar.
Rupee was under pressure through Thursday's session on broad dollar strength. There is, however, some respite overnight, IFA Global Research Academy said in a note. "We expect it to trade in a 82.50-82.80 range with sideways price action," it added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.22 per cent to 112.67.
Brent crude futures, the global oil benchmark, advanced 0.75 per cent to USD 95.38 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 9.85 points or 0.02 per cent higher at 60,846.26. Similarly, the broader NSE Nifty rose 10.85 points or 0.06 per cent to 18,063.55.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth Rs 677.62 crore, according to exchange data.