The rupee moved up 7 paise to 63.59 against the dollar in early session on Friday, helped by selling of the American currency by banks and exporters.
The local currency on Thursday had settled 6 paise down at 63.66.
Foreign portfolio investors (FPIs) sold shares worth a net Rs 623.63 crore on Thursday, as per provisional data released by stock exchanges.
Meanwhile, domestic stock markets opened in the green following strong global cues. The BSE Sensex was trading up 99 points, or 0.29 per cent, at 34,602 at around 9.25 am (IST) while the NSE Nifty rose 32.25 points, or 0.30 per cent, to 10,683 at around the same time.
Government bonds were little changed on January 11 as sentiment turned bearish amid higher oil prices and lower expectations on rate cuts in the near future.
The GoI benchmark 7.17 per cent, 2028 bond yield remained unchanged at 7.26 per cent in the previous session.