The rupee plunged to three-week low in early trade before coming into some selling. The rupee fell to 61.96, lowest since October 10.
Currently the Indian currency was trading 61.83/84 versus Thursday close of 61.50/51.
The US currency largely tracking global dollar gains with Dollar index up 0.17 percent at 80.341.
The euro nursed heavy losses early in Asia on Friday, having suffered its biggest one-day drop in over six months as a shock slowdown in inflation piled pressure on the European Central Bank to further stimulate the economy.
Foreign investors bought Indian shares worth Rs 1,875 crore on Thursday, their biggest single-day purchase since May 21, provisional exchange data showed, remaining net buyers for a 20th consecutive session, bringing their total buying to nearly Rs 18,192 crore ($2.96 billion) during that period.
