The rupee resumed higher at 59.95 per dollar as against the last closing level of 60.19 at the Interbank Foreign Exchange (Forex) Market.
It firmed up further to 59.76 per dollar before quoting 59.83 per dollar at 1040 hours.
It moved in a range of 59.76 and 59.95 per dollar during the morning deals.
Persistent selling of dollars by banks and exporters on hopes of capital inflows from foreign funds into equity market mainly boosted the rupee value, a forex dealer said.
Meanwhile, the Indian benchmark BSE-30 share index, Sensex, rose by 326 points or 1.73 per cent to 19,201.94 at 1050 hours.
In New York, the US dollar rose against the Japanese yen today but was lower overall, heading towards a loss for the month.
Crude oil prices rose in Asian trade today after a brief dip as dealers digested upbeat US economic data and comments from a Federal Reserve official that its stimulus programme will not end soon, analysts said.
Indian rupee gains, breaches 60 against US dollar
(Reuters) Indian rupee gained on Friday, breaching below 60 to the US dollar, on hopes recent foreign investor selling could subside after comments from US Federal Reserve officials seen as supporting continued monetary stimulus sparked a global risk rally.
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The rupee was at 59.91/92 to the dollar as against 60.19/20 Thursday close. It fell to a record low of 60.76 on Wednesday.