Dollar closed at 65.2800 against its opening at 65.3300. Dollar ended flat as importers demanded dollars for their month-end payments ahead of extended weekend. "Oil importers will be seen demanding dollars for their month-end payments and ahead of a long weekend.As dollar opened down tracking the subdued trading in the dollar amid likely overseas fund inflows into local debt after the Reserve Bank of India increased the FPI debt limits for both corporate and sovereign bonds. FII flows will be seen in the market today, supporting the rupee also the greenback is subdued. The RBI increased FPI debt limit in central government securities by Rs 80 billion to Rs 2.5 trillion and limit for FPI investment in state government securities by 63 billion to Rs 393 billion. The central bank will auction four government securities worth Rs 150 billion at its weekly auction later today. The greenback remained subdued after the release of mixed economic data from the world's largest economy. 

Meanwhile, local stocks opened higher tracking Asian shares as investors digested prospects for US tax reform amid hopes of a 50 basis points rate cut that is likely to continue to provide momentum in the market. On the global front Asian shares traded mixed Friday as markets digested prospects for US tax reform and slew of economic data. Back in Asia, investors digested slew of economic data a raft of Japan economic data that showed industrial output and core consumer prices for the month of August beat estimates, while retail sales missed expectations.

Indian markets will remain closed Monday on account of Mahatma Gandhi Jayanti.

BSE Sensex closed almost unchanged at 31,283.72, up 1.24 points, while the Nifty 50 rose 19.65 points.

INTERNATIONAL

Asian shares regained some poise after a tough week in which the gathering risk of a U.S. rate rise lifted Treasury yields toward nine-year highs and boosted borrowing costs across the region.

Japan's core inflation accelerated in August, industrial output rose more than expected and demand for labor remained at its strongest in over 40 years in a further sign of solid momentum in the world's third-largest economy.

South Korea's financial regulator said it will ban raising money through all forms of virtual currencies, a move that follows similar restrictions in China on initial coin offerings.

Gold prices fell slightly in Asia on Friday as investors looked for support from physical markets in India with China entering a week-long holiday period next month and trade expected to ease.

Crude oil prices edged higher on Friday with sentiment underpinned by an ongoing rebalance of supply and demand and geopolitical tensions over rumblings for Kurdish independence in Iraq.