The Indian rupee climbed 0.3 percent on Friday, boosted by foreign fund inflows as local shares ended up for the second straight session, and it touched its highest in more than a week.
The dollar's slide from this week's seven-week highs against the euro and yen, as well as the recovery of Asian currencies against the US currency, helped rupee sentiment.
It traded in a narrow range, slightly above Thursday's close, for much of the session as dollar buying by oil companies kept gains in check.
"It was a peculiar day. The pair did not move much for the better part of the day but the rupee went up sharply towards the end of the day on foreign fund inflows," a dealer with a foreign bank said.
The partially convertible rupee gained 0.3 percent over the week and ended at the day's high at about 45.84/86 a dollar, above Thursday's close of 45.96/98. It hit a three-year low of 46.57 on May 31 on equity outflows.
"Suddenly things are looking good for the rupee. Until two days ago, rupee's prospects were looking bleak," the dealer said.
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