Indian rupee gains this week as dollar supply surges ahead of deposit window's close

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 Indian rupee ended at 95.3775, up 0.2% 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% 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. Month-end importer dollar demand weighed on the local currency early in Friday’s session, but flows ahead of MSCI index rebalancing and some offers from state-run banks led to a sharp reversal in the pair, traders said. MSCI equity index rebalancing is due on August 31 – inflows related to which provided an additional boost to the rupee, bankers added. Asian currencies traded mixed, with the dollar little changed ahead of Fede