The rupee appreciated by 12 paise to 85.42 against the US dollar in early trade, supported by robust foreign institutional investor (FII) inflows and a weaker dollar index.
However, gains were limited due to a widening trade deficit, a sluggish start in domestic equity markets, and rising Brent crude prices, according to forex traders.
At the interbank foreign exchange market, the rupee opened strong at 85.28 before easing to 85.42, marking a 12 paise gain from its previous close. On Thursday, the rupee had slipped 22 paise to end at 85.54 against the dollar.