The rupee on Friday closed 13 paise higher at 44.86/87 against the U.S. currency on fresh selling of dollar by banks and exporters and gains in equity markets.
Dollar weakness in overseas markets mainly boosted the value of rupee against the U.S. currecy, a dealer said.
At the interbank foreign exchange market, the rupee opened higher at 44.91/92 against the previous closing of 44.99/45.00. It hovered in a range of 44.83-45.05 before settling at 44.86/87.
The U.S. dollar fell in New York on Thursday after hitting its highest level against the euro in more than six weeks, as commodities strengthened, turning equities higher and reducing the greenback's appeal against riskier assets.
In London, the euro rose against the dollar after strong growth data in France and Germany bolstered speculation that a healthy euro zone economy would keep interest rates in the region higher than the U.S. ones.
Meanwhile, U.S. crude futures were trading above $99 a barrel in London.
The RBI has fixed the reference rate for the dollar at Rs.44.91 and for the euro at Rs.64.03.
The rupee moved up further against the pound sterling to end at Rs 72.95/97 from yesterday's closing level of Rs 73.15/17, while declined against the euro to close at Rs 64.05/07 from Rs 63.71/73 previously.
It, however, recovered against the Japanese yen to Rs 55.57/59 per 100 yen from last close of Rs 55.61/63.
