The rupee after opening on a positive note, pared the gains and slipped 5 paise to 82.29 against the US dollar amid high volatility in early trade on Friday.
At the interbank foreign exchange, the domestic unit opened at 82.26 against the dollar, then touched 82.12, registering a gain of 12 paise over its previous close. In initial trade, the rupee also touched 82.29 against the American currency.
On Thursday, the rupee had settled at 82.24 against the greenback.
"Dollar strengthened immediately post the CPI print but saw a massive reversal on short covering in majors," IFA Global Research Academy said in a research note, adding the US headline September CPI came in higher than expected at 8.2 per cent year-on-year (0.4 per cent MoM) against 8.1 per cent yoy (0.2 per cent month-on-month).
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.08 per cent to 112.27.
Brent crude futures, the global oil benchmark, fell 0.13 per cent to USD 94.45 per barrel.
In the domestic equity market, the 30-share BSE Sensex jumped 972.8 points or 1.70 per cent to 58,208.13, and the broader NSE Nifty advanced 273.80 points or 1.61 per cent to 17,288.15.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets as they offloaded shares worth Rs 1,636.43 crore on Thursday, according to exchange data.
