Traders said a weak dollar overseas also supported the rupee.
At the interbank foreign exchange, the domestic unit opened strong at 82.50 against the dollar and traded between 82.50 and 82.75. It finally settled at 82.58 (provisional) against the American currency, registering a gain of 18 paise against its previous close.
On Thursday, the rupee settled at 82.76 against the U.S. dollar.
Jateen Trivedi, V-P Research Analyst at LKP Securities, said the movement in the rupee’s favour was triggered as the participants offloaded the dollar following “positive sentiments as Eleven U.S. banks, JP Morgan and others will deposit up to $30 billion into First Republic Bank coming to rescue the lender caught up in a crisis triggered by the collapse of two U.S. lenders”.
He, however, said the “rupee can continue the volatile moves as prices shall factor in the Fed’s policy and Fed’s viewpoint into the financial sector impacted by interest rate high cycle”.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.21 per cent lower at 104.20.
Global oil benchmark Brent crude futures rose 1.26 per cent to $75.64 per barrel.
The 30-share BSE Sensex closed 355.06 points or 0.62 per cent higher at 57,989.90 points while the broader NSE Nifty climbed 114.45 points or 0.67 per cent at 17,100.05 points.
Foreign Institutional Investors (FIIs) remained net sellers in the domestic capital market on Thursday as they offloaded shares worth ₹282.06 crore, according to exchange data.