The rupee traded at 55.89-55.90 per dollar, above its previous close of 56.08-56.09, helped by dollar-selling from two large foreign banks on what was seen as custodian flows, as well as from a mid-sized infrastructure company.
Traders say a sharp fall in global oil prices was also prompting oil firms to stay out of the market. Dealers estimate if oil prices stay around current levels, it would reduce dollar demand by oil firms by nearly USD 2 to USD 3 billion per month.
Brent crude fell further on Friday, staying below USD 102 per barrel.
