Dollar closed at 71.80 against its opening at 71.59. Dollar/rupee extend gains on buying by nationalised banks mostly on behalf of oil importers amid likely overseas fund outflows from local stocks. Dollar hovered near a one-week high against the currencies, buoyed by stronger-than-expected U.S. jobs and factory data, although the Federal Reserve's cautious policy outlook and thinned holiday trade in Asia are likely to cap further gains.
Data on Friday showed that the U.S. economy created 304,000 jobs in January, the highest in 11 months, and above street estimates. The solid jobs report also allayed concerns of the slowdown in the U.S. economy, leading traders to trim expectations the Fed would need to cut interest rates to support the economy later this year.
Bond yields gained further after higher-than-expected borrowing program announced by the government in the interim budget. The government announced record borrowing plan at 7.04 trillion for fiscal year 2020, higher than 6.4 trillion to meet the expenditure targets.
Meanwhile, Brent oil price surged above $62 a barrel level as US sanctions on Venezuela's oil exports and a notable drop in OPEC's oil output eased concerns about any excess supply in the market.
Sensex ended rebound, gains 113 points, Nifty tops 10,900.