The rupee however failed to retain most gains made during the session on the back of profit-taking in domestic shares and sporadic dollar buying intervention by the central bank.
The partially convertible rupee closed at 58.79/80 per dollar after hitting 58.62, its strongest since June 19 and 0.85 percent above its previous close of 59.29/30.
For the week, the rupee rose 2.1%, its third consecutive weekly gain and also its biggest weekly rise since the week to Sept 13.
Traders expect the rupee to hold in a 58.50 to 59.50 per dollar range for the next week.
In the offshore non-deliverable forward, the one-month contract was at 59.09, while the three-month was at 59.73.