Marking its biggest single-day gain in nearly a month, the rupee jumped 27 paise end higher at 60.66 against the dollar as banks and exporters sold the American dollars aggressively.
The domestic unit snapped its two-day losing streak to end at 60.93 on Thursday.
Friday, the unit opened weaker at 60.98 and further surpassed 61 levels to 61.02 per dollar maintaining caution ahead of retail inflation data that released after market hours.
India's annual consumer price inflation eased to 7.80 per cent in August. According to experts, this is a positive direction for the economy, however, does not provide enough room for RBI to cut interest rates.
Towards the end of the trading session, the rupee strengthened to 60.64 per dollar on dollar selling by banks and exporters.
Call rates rise; G-Sec yields flat
The interbank call money rate, the rate at which banks borrow short term funds from one another, ended higher at 7.95 per cent from the previous close of 7.70 per cent.
The 8.40 per cent government security maturing in 2024, rose a tad to Rs 99.31 from Thursday’s close of Rs 99.28, while its yield remained unchanged at 8.50 per cent.