Rupee completed a second weekly gain after global funds added to holdings of the nation?s shares to benefit from growth in Asia?s third-biggest economy.
Overseas investors bought $260 million more Indian shares than they sold this month through June 8, exchange data show.
The country?s economy grew 7.8% last quarter from a year earlier after having expanded 8.3% in the previous three-month period, a government report showed on May 31.
?India?s economic growth is generally holding up and people are also looking at the performance of the stock market,? said Mirza Baig, a Singapore-based currency strategist at Deutsche Bank.
Meanwhile, government bonds recovered on fresh buying support from banks and corporates and call money rates also finished higher at 7.40% at the overnight call money market on Friday due to good demand from borrowing banks.
The 7.80% government security maturing in 2021 shot up to R97.11 from 96.87 on Thursday, while its yield declined to 8.23% from 8.27%.
The 8.13% government security maturing in 2022 rose to R98.48 from R98.30, while its yield eased to 8.34% from 8.36%.