The Indian rupee appreciated by 18 paise to reach 85.56 against the US dollar in early trade on Friday, supported by continued foreign fund inflows.
Forex dealers reported that in the past four days, foreign investors injected over USD 2 billion into Indian equities, while month-to-date inflows into Indian bonds surpassed USD 3 billion.
However, the rupee's gains were limited as investors remained cautious about the potential economic impact of rising global trade tensions.