The rupee was trading marginally up by 3 paise at 61.71 against the dollar at 4.17 p.m. local time on mild dollar selling by banks and exporters.
Demand for the American dollar dampened following a failure by the US lawmakers to resolve a budget impasse.
Currency traders remained hopeful that the US shutdown will delay the end of tapering of the $85-billion monetary stimulus. This has further delayed the fears of dollar outflows from emerging markets such as India.
In the opening session, the domestic unit shed 15 paise to 61.89 per dollar against the previous close of 61.74 on higher dollar demand.
On Thursday, the domestic unit sharply gained against the dollar due to dollar’s weakness and stronger capital inflows.
