The partially convertible rupee closed at 45.08/085 per dollar, off an intra-day low of 45.15, but slightly above Thursday's 45.0825/0925.
"There was good dollar buying interest by oil companies and for month-end payments. But there was some long unwinding of dollars as the currency was soft abroad, which took the rupee up slightly," said a dealer at a private bank. "Going forward, the focus clearly will be on how the stock market performs."
Indian shares fell for the third straight session on Friday to end at near-nine-week lows as foreign investors selling and some discouraging earnings turned investors away.