The rupee appreciated by 38 paise to close at a two-week high of 71.42 against the US dollar on Friday led by a rally in domestic equities and renewed hopes of the US-China trade talks.
At the interbank foreign exchange, the rupee opened up at 71.76 and gained further strength to touch a high of 71.38 against the US dollar.
The domestic currency finally settled with a gain of 38 paise at 71.42, a level not seen since August 16.
On Thursday, the rupee had closed at 71.80 against the US currency.
The rupee sentiment revived as concerns over US-China trade friction receded after China said it will not retaliate against the latest US tariffs, dealers said.