The rupee appreciated by 21 paise to 87.75 against the US dollar in early trade on Friday, supported by a weaker greenback against major global currencies and likely intervention by the Reserve Bank of India.
According to forex traders, renewed foreign fund inflows and easing crude oil prices further lifted investor sentiment.
At the interbank foreign exchange market, the domestic currency opened at 87.91 and strengthened to an early high of 87.75 per dollar, marking a gain of 21 paise from its previous close.