The Indian rupee closed slightly stronger on Friday, bouncing back from three-week lows struck in intra-day trade, on foreign fund inflows and receding corporate demand for dollars.
The local currency had opened weak as the dollar hovered near a two-month high against the yen, ahead of an expected increase in US interest rates next week.
"Today, the market was purely driven by sentiment than actual flows. The demand for dollars was sporadic but not like the past three days," a dealer with a foreign bank said.
The partially convertible rupee ended at 46.12/13 a dollar, marginally up from Thursday's close of 46.13/14. It had dropped to 46.26 earlier in the day.