The rupee rises to 54.47/48 from a one-and-half month low of 54.73 reached earlier, as domestic shares recover from three-month lows hit on Thursday. The pair had closed at 54.36/37 on Thursday.
The high of 54.73 hit earlier marks the 50 percent Fibonacci retracement of the decline from 55.89 on November 26 to 52.87 on February 6.
USD/INR is likely to face its next resistance at 54.88, the high on January 16.
Finance minister's clarification on the tax resident certificate issue also improves sentiment for the rupee, traders say