At 9:21 a.m. (0351 GMT), the rupee was at 52.68/69 per dollar, 1.8 percent stronger than its previous close of 53.64/65.

It strengthened to as much as 52.50 in early deals. On Thursday, it had touched a record low of 54.30.

After the market closed on Thursday, the Reserve Bank of India reduced trading limits for banks in the foreign exchange market, making it difficult for market players to keep speculative positions open for a long time.