The Indian rupee rallied smartly to end Friday at a one-week closing high, helped by dollar weakness overseas and bunched-up greenback inflows after a day's break due to the half-year account closing.
The rupee closed at 45.8900/9000 per dollar, gaining 0.24 percent from its previous close of 46.0000/0100.
"All the factors were rupee-positive today, from a slight softening in oil prices to the dollar's weakness overseas and the bunched inflows gathered over two days," a trading head at a private bank said.
Traders said the rupee took support from good gains posted by local shares on the Mumbai Stock Exchange, where the top-30 share index closed at a near-five-month high ahead of the earnings season. Foreign fund inflows were also seen picking up.
The rupee erased all the losses it had accumulated in the first two sessions of the week, when oil spiked to a record peak of $50.47 per barrel on Tuesday. It ended the week steady.
Crude oil is India's single biggest import item and its high price has been responsible for widening the country's trade deficit and fuelling inflation in Asia's fourth-largest economy.
Official data on Thursday showed India's economy expanded by a better-than-expected 7.4 percent in the year to April-June.
Rupee premiums on forward dollars, however, ended slightly dearer as importers hurt by the local currency's recent weak spell and uncertain about oil's outlook opted to hedge exposures.
The premium on the benchmark six-month dollar rose 5 basis points to end at an annualised 2.12 percent.