The Indian rupee cut its straight eight sessions of losing string and recovered by a mere seven paise to close at 45.34/35 against the greenback on the back of fresh dollar selling by exporters amid renewed capital inflows.
However, dollar buying by importers and fall in local equities capped the rupee rise.
In fairly active trade at the Interbank Foreign Exchange (Forex) market, the local unit opened strong at 45.25/26 per dollar from yesterday's close of 45.41/42.
However, it moved in a range of 45.24 and 45.46 before concluding at 45.34/35. In last eight trading sessions, the rupee had plunged by 134 paise or 3.04 per cent.
Mr. Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said, "Indian rupee saw a volatile trading as it moved almost 22 paisa throughout the day, rupee opened strong but in the afternoon session as equity markets turned red, rupee followed their way and dollar buying was also seen by oil importers. Surprisingly the Indian Industrial output grew by 8.8 per cent much above market expectations, the positive IIP numbers didn't help the local shares which continued to see a sell-off before a long weekend."
"The trading range for the USD/INR will be 45.10 to 45.50 on Saturday," he added.
The Indian benchmark Sensex on Thursday tumbled by nearly 220 points or 1.29 per cent.