The rupee strengthened by 17 paise to 86.19 against the US dollar in early trade on Friday, supported by positive domestic equities and fresh foreign fund inflows.
According to forex traders, the rupee's upward momentum was driven by foreign portfolio investors (FPIs) emerging as net buyers for the second time this week, with significant investments in both equities and debt.
At the interbank foreign exchange market, the rupee opened at 86.26 per dollar before gaining further to 86.19, marking a 17 paise increase from its previous closing level.