[EDIT] Working soul for Android 2.2
Well, how can you make it work. You will need to download the font Rupee_Foradian.ttffrom here and put it in a folder assets.
Then put this line in a file strings.xml
<string name="rs">`</string>
And finally install Typeface with this code:
TextView t = (TextView) findViewById(R.id.text);
Typeface face = Typeface.createFromAsset(getAssets(), "Rupee_Foradian.ttf");
t.setTypeface(face);
t.setText("Balance " + getResources().getString(R.string.rs));

[Original] Does not work on Android 2.2
Put this line in strings.xml
<string name="rs">\u20B9</string>
, , TextView, :
TextView text = (TextView) findViewById(R.id.text);
text.setText("Balance " + getResources().getString(R.string.rs) + VALUE);