The local unit finally settled for the day at 70.82, higher by 8 paise over its previous closing price.
Forex dealers said the local unit recovered lost ground tracking weakness in American dollar against some currencies overseas following reports that the Federal Reserve could slow down its pace of interest rate hikes next year.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 70.5663 and for rupee/euro at 80.2245. The reference rate for rupee/British pound was fixed at 90.1212 and for rupee/100 Japanese yen at 62.53.
The Organization of the Petroleum Exporting Countries was meeting in Vienna for a second day running.
Brent crude, the international oil benchmark, was trading 4.21 per cent higher at USD 62.62 per barrel Friday.
The BSE Sensex rallied 361.12 points, or 1.02 per cent, to close at 35,673.25. Similarly, the broader NSE Nifty jumped 92.55 points, or 0.87 per cent, to 10,693.70.
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