MUMBAI: The Indian rupee ended higher on Friday, rounding out a weekly gain, boosted by a spurt of dollar liquidity ahead of the closing of a special deposit window.
The rupee ended at 95.3775, up 0.2 percent from Thursday’s close of 95.54. The currency reversed modest early losses in afternoon trade as deposit-related dollar inflows triggered stop-loss’s and unwinding in positions betting on rupee weakness. The currency climbed 0.3 percent versus the dollar on the week.
The Reserve Bank of India’s discounted non-resident dollar deposit scheme ends on Monday and bankers said the central bank’s decision to give lenders greater flexibility in accessing its swap facility should prevent excess dollar liquidity from lingering in the banking system for an extended period.