Indian rupee trading at 58.46/48 versus US dollar against its previous close of 58.79/80, tracking foreign investor-led gains in domestic shares.
Indian rupee had earlier fallen as low as 58.32 vs US dollar, its lowest since June 18, 2013.
Foreign institutional investors (FIIs) bought Indian shares worth 36.34 billion rupees ($615.62 million) on Friday, their biggest single-day purchase since March, provisional exchange data showed.
Earlier in the session, the RBI was seen buying dollars sporadically, which capped falls in Indian rupee but has been seen as less active in the afternoon.
($1 = 59.0300 Indian Rupees)