The rupee appreciated 8 paise to 86.85 against the US dollar in early trade on Friday as the American currency retreated from elevated level and domestic equity markets shows favourable trend.
The local unit, however, remained under pressure due to unabated foreign fund withdrawal and higher crude oil prices, forex traders said.
At the interbank foreign exchange, the rupee opened at 86.86 and gained further ground to trade at 86.85 against the greenback during early deals, up 8 paise from its previous close.