Private payrolls rose by 324,000 jobs last month, the ADP National Employment report showed, more than an increase of 189,000 that economists polled by Reuters had forecast.
The dollar index edged 0.1% higher at 99.869, after touching a 15-month low of 99.574 earlier. The index was down 2.3% for the week, its biggest weekly decline in eight months.
Following the US Federal Reserve's most aggressive cycle of interest rate hikes in decades, to battle stubbornly high inflation, traders are now positioning for the central bank to turn much more dovish.
The rupee finished up 0.41% to 82.00 per dollar, having firmed to its highest since March 13 at 81.92, in a session where the Nifty 50 and S&P BSE Sensex rose around 1% each.