Snapping its four-session losing run, the rupee ticked higher by 2 paise to finish at 69.92 against the US dollar Friday.
Forex traders said the domestic unit recovered in the later part of the day amid reports that the US is expected to remove India from its currency manipulation watch list.
According to media reports, the US Treasury Department may name Vietnam as a currency manipulator and is expected to remove India and South Korea from its watch list.
However, rising crude oil prices in the overseas market, sustained foreign fund outflows and continuing sell-off in the domestic equity market weighed on the rupee, forex traders added.