The rupee is expected to open stronger on Friday on the back of the euro's gains against the dollar and positive Asian shares, but oil importers' demand for the greenback is likely to weigh.
Traders expect the partially convertible rupee to open around 44.90 per dollar and move in a 44.85-45.0 range. It had closed 0.2% weaker at 44.96/97 on Thursday.
The euro extended its rebound from one-week lows in Asia on Friday following news Greece has reached a deal with international lenders on an austerity plan that would bring it one step closer to securing much-needed financial aid.
At 0244 GMT, the euro was at USD 1.4255, compared with USD 1.4213 at the close of the Indian market on Thursday.
The index of the dollar against six major currencies was down 0.21% at 75.289 points. It was at 75.440 points when the domestic market closed.
The MSCI index of Asian stocks ex-Japan was up 0.67% and the Nifty futures traded in Singapore were up 0.56%, suggesting a positive opening for local shares.
Brent crude rebounded by more than USD 1 from a four-month low on Friday as traders and investors attempted to gauge the actual impact a release of emergency oil stockpiles coordinated by the International Energy Agency will have on supplies.
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