USD/INR closed at 71.8450 against its open at 72.69.Dollar ended at one-week low Friday on selling by foreign banks tracking a weak greenback after US and China moved to reconcile their trade dispute providing some respite to risk sentiments globally. "Foreign banks sold dollars following a drop in dollar index as sentiments recovered as US-China trade tension eased.
The greenback slipped against major peers as investors' sentiment improved on reports of US and China returning to negotiation table.
Dollar index, which weighs greenback against a basket of six major currencies, traded at 94.49 Friday compared to 95.22 at close of Indian market on Wednesday.
On Wednesday, the Wall Street Journal reported that senior US officials led by Treasury Secretary Steven Mnuchin sent invitations to their counterparts in China proposing another round of bilateral trade talks.
A surge in euro after European Central Bank President Mario Draghi suggested on Thursday at a post-policy meeting news conference that low inflation was less of a worry, also weighed on dollar.
Also, US retail inflation recorded a weaker than expected figure in August. The Labor Department said on Thursday its Consumer Price Index increased 0.2% last month after a similar gain in July. In the 12 months through August, the CPI increased 2.7%, slowing from July's 2.9% rise.
Sensex ends over 370 points higher, Nifty ends above 11,500.