The rupee gained 15 paise to 82.47 against the US dollar in early trade on Friday tracking a firm trend in domestic equities.
Forex traders said sustained foreign fund outflows and strength of the American currency in the overseas market weighed on investor sentiments and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.52 against the dollar, then gained further ground to touch 82.47, registering a rise of 15 paise over its previous close.
On Thursday, the rupee settled at 82.62 against the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 105.07.
Brent crude futures, the global oil benchmark, advanced 1.22 per cent to USD 79.65 per barrel.
As per ADP, the US economy added 235,000 private jobs in December against expected 150,000. Initial jobless claims too came in lower at 204,000 against expected 225,000, IFA Global Research Academy said in a research note.
"This increases the probability of the US Fed delivering in line with its hawkish communication as wages and therefore core inflation could stay elevated for longer," it added.
In the domestic equity market, the 30-share BSE Sensex was trading 177.35 points or 0.20 per cent higher at 60,530.62. The broader NSE Nifty rose 40.80 points or 0.23 per cent to 18,032.95.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,449.45 crore, according to exchange data.
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