The Rupee closed weak India and Pakistan, currently locked in the worst confrontation in more than two decades, have been clashing since India struck multiple locations in Pakistan on Wednesday in retaliation for a deadly attack in its restive region of Kashmir last month. The rupee went from its peak of near 84.50 per dollar on the day to end down 1% at 85.71, marking its biggest one-day percentage drop in more than two years. The dollar was set for a weekly gain against major currencies, including the Swiss franc, yen and euro on Friday, after a U.S.-UK trade deal increased optimism about upcoming U.S.-China talks. The U.S. dollar is on track for the fourth straight week of gains against the Swiss franc. But it is down 0.35% to 0.82865 franc on the session. The euro is set for the third straight week of losses against the dollar. It was, however, last up 0.34% on the day at $1.126675. The U.S. currency is on track for the third consecutive week of gains against the Japanese yen although it is down 0.61% to 145.025 yen on the session. Sterling was trading higher and was set for a weekly gain after losing ground on Thursday following the announcement of the U.S.-UK trade deal. It strengthened 0.42% to $1.3302. After a volatile few days, it has settled around 30 to the dollar, more than 6% stronger than at the end of April. Sterling was set for a flat week against the dollar, which has benefited from a nascent sense of optimism that more trade deals may be in the offing, with particular focus on this weekend's scheduled talks between U.S. and Chinese negotiators in Switzerland. Against the euro , however, the pound is on a roll. The euro is heading for its largest four-week loss against sterling since October 2022, when the pound burst above record lows struck during the crisis triggered by former Prime Minister Liz Truss' failed budget plans. The dollar weakened 0.08% to 7.236 versus the offshore Chinese yuan, but was set for a weekly gain. The Korean won strengthened 0.48% against the dollar to 1,397.98 per dollar, also on track to finish the week higher. Oil prices rose around 1% on Friday and were set for their first weekly gains since mid-April as a U.S. trade deal with United Kingdom turned investors optimistic ahead of talks between top officials from Washington and Beijing. Brent crude rose by 61 cents, or 1%, to $63.45 a barrel by 12:29 p.m. ET (1629 GMT). U.S. West Texas Intermediate crude was up 57 cents, or about 1%, at $60.48.......