Foreign funds have been net buyers of $330 million over the past seven sessions to Thursday as emerging market assets have remained stable despite some recent weak data out of the United States, which has largely been discounted as due to severe cold weather.
Some dealers have also cited corporate flows related to GlaxoSmithKline Plc's roughly $1 billion offer to raise its stake in its Indian pharmaceutical unit. The offer opened on Tuesday and closes on March 5.
Sustained foreign capital inflows, coupled with a recovery in the equity market mainly boosted the rupee against the dollar.
The rupee needs to break the 61.95 level for further appreciation, else it will be trading in the 62.05-62.80 band for the coming week.
The partially convertible rupee closed at 62.12/13 per dollar compared with 62.26/27 on Thursday.
The rupee, however, fell 0.3 per cent for the week. In the offshore non-deliverable forwards, the one-month contract was at 62.43, while the three-month was at 63.28.