The Indian rupee was up by 16 paise to 45.32 against the US dollar in early trade on Friday on fresh dollar-selling by exporters and corporates amid firm local equity markets and dollar weakness overseas.
The domestic unit opened higher at 45.40/41 per dollar on the Interbank Foreign Exchange, as against on Thursday's closing level of 45.48/49 per dollar.
It subsequently rose further to 45.32 per dollar before quoting at 45.36/37 per dollar at 1030 hours.
It moved in a range between 45.32 and 45.42 per dollar in morning deals.
Fresh dollar-selling by exporters and some banks and a better opening in the stock market kept the rupee sentiment firm, a forex dealer said.
The US dollar fell to a record low against the Swiss franc and lost ground against both the Japanese yen and the euro on Thursday as currency traders turned to traditionally safer investments other than the US dollar in response to soaring oil prices.
The Indian benchmark Sensex was up by over 114.79 points, or 0.65 per cent, in early trade on Friday.
Meanwhile, crude prices fell in Asian trade on Friday as supply fears eased after oil cartel OPEC promised to boost output to make up for any production loss in revolt-hit Libya, analysts said.
New York's main contract, light sweet crude for April delivery, dipped by 40 cents to USD 96.88 per barrel.