USD/INR closed at 72.48 against its open at 72.5000. Dollar ended at one-week low Friday on selling by foreign banks along with exporters after intervention by the Reserve Bank of India
Investors now believe that the pair may have stabilized around Rs 72-72.50/$1 until oil prices surges again as and when the sanctions on Iran comes into effect from November.
"Exporters sold in lot after RBI was seen intervening at higher levels. Bank of India, Bank of Baroda sold dollars on behalf of RBI,"
Adding to that, government raising import duty on a list of items to curb rupee fall and support country's current account deficit further supported the local currency.
The Ministry of Finance issued a notification listing the items that will bear the increase in import duty. The increase in basic customs duty on import of these items will come into effect from Sep 27.
Meanwhile, the greenback edged higher against other major peers after the Federal Reserve raised US interest rates as expected for the eighth time and signalled a faster tightening path ahead.
Expectations of robust US economic growth is further supporting sentiments for dollar.
Sensex provisionally ends 88 points lower with 21 components in the red.