Posting its biggest single-day gain this year, the home currency settled the day with a solid 40 paise gain.
This is the sixth consecutive session of rise.
Forex market sentiment turned highly buoyant after finance minister Arun Jaitley announced a fiscal deficit target that was in line with estimates along with proposal to further liberalize FDI policy.
Balancing between the need for stimulating growth and continuing fiscal discipline, the Finance Minister said the government will target to bring down the fiscal deficit to 3.2 per cent of the GDP in the fiscal 2017-18.
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Cheering Budget proposals and clarity on FPI taxation steered the domestic equity markets to multi-month highs.
Volatile dollar movements ahead of the FOMC rate decision later in the day against the backdrop of economic and trade policy changes by the new President further supported the rupee trade, a forex dealer commented.
As the world's fastest-growing economy continues to reel in the aftermath of last year's demonetisation drive, strong policy measures to revive both growth cycle and investor sentiment will further strengthen the rupee in coming days, he added.
However, foreign funds turned net sellers after recent buying spree and sold shares worth a net Rs 532.88 crore yesterday.
The home currency resumed on firm footing at 67.62 as compared to Thursday's closing value of 67.87 at the Interbank Foreign Exchange (forex) market on continued dollar selling.
Maintaining its strong showing, the local unit finally settled at the day's highest level of 67.47, showing a smart 40 paise, or 0.59 per cent jump - the level not seen since December 14, 2016 when it had closed at 67.43.
measures that the Trump administration is planning and Fed's policy statements.
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