The rupee ended strong by 14 paise at 67.03 on increased selling of the US currency by exporters and banks amid higher foreign inflows.
Staying with its rising streak for the third day, the rupee appreciated 12 paise to 67.05 against the dollar in early trade.
It hovered in a range of 67.13 and 66.95 before ending at 67.03 at 5 pm local time.
Yesterday, the rupee had gained 16 paise to 67.17 on sustained selling of the American currency amid a continued rally in domestic equities.
Meanwhile, the benchmark BSE index surged 286.92 points or 1.09 per cent to end at 26,653.60 on upbeat results and better monsoon forecast.
In the overseas market, the dollar stayed in a consolidation mode on Friday after its rally to two-month highs ran out of steam with bulls looking for fresh guidance from the head of the US central bank.
The dollar index was last at 95.195, having pulled back from a peak of 95.661 set on Wednesday.