The rupee settled at 71.72 against 71.84 at the previous close. The local unit moved in 71.5975-71.88 per dollar band intra-day.
Dollar/rupee ended down Friday on improved risk sentiments over optimism on US-China trade war. The rupee was supported by improved risk sentiments amid easing US-China trade tensions. The gain in the Chinese yuan and selling by foreign banks also supported the rupee. China's commerce ministry said that the trade talks in early october were decided during a phone conversation between Chinese Vice Premier Liu He, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
The dollar edged lower on Friday and was heading for its biggest weekly drop in a month as expectations grew that the Federal Reserve would cut U.S. interest rates this month. The latest risk rally rests on a number of pillars like the recent upbeat U.S. data, receding political risks in the UK and hopes for an abatement of the US-China trade tensions.
Risky currencies including the Australian dollar surged on Friday after China's central bank cut the amount of cash that banks must hold as reserves, with markets also expecting the European Central Bank to unveil more stimulus next week. The PBOC said it was cutting banks' reserve requirements for the third time this year, sending a ripple of optimism through currency markets.
Oil prices fell on Friday as U.S.-China trade tensions continued to weigh on sentiment despite recent diplomatic progress. Brent crude was down 45 cents, or 0.7%, at $60.50 a barrel.
Gold fell 1% on Friday, putting it on track for its second weekly fall, as robust economic data from the United States and the planned resumption of trade talks between Washington and Beijing boosted appetite for riskier assets
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