The rupee closed almost flat at 65.76 against the US dollar on some demand for the American currency from banks and importers despite a steady greenback in the overseas market.
The domestic currency opened lower at 65.80 against Thursday’s level of 65.75 at the Interbank Foreign Exchange (Forex) market and dropped further to 65.84 on demand for dollars from banks.
However, it trimmed initial losses and recovered to 65.72 on selling of greenback by exporters before finishing at 65.76, still showing a loss of just one paise or 0.02%.
The local unit has dropped 27 paise, or 0.41%, in two days.
It hovered in a range of 65.72 and 65.84 during the day. The dollar index traded higher by 0.11% against a basket of six currencies in late afternoon trade.
In Asian market, the dollar stabilised on Friday as investors awaited the US jobs report to help them weigh the odds of a Federal Reserve rate increase this year.
Momentum on the US dollar’s rise, which hit multi-month highs against the euro and the yen Thursday, tapered off on Friday after data showed new applications for unemployment benefits last week logged a bigger-than-expected jump in the US.
Meanwhile, the benchmark BSE Sensex ended lower by 38.96 points, or 0.15%, at 26,265.24.