The rupee had rebounded by 12 paise to end at 73 per US dollar on Tuesday The rupee appreciated by 50 paise against the dollar to close at 72.50 on Friday.
Selling of dollars by exporters supported the rupee, say analysts.
The dollar, which had weakened following the US midterm election results, staged a recovery after the Federal Reserve kept interest rates unchanged but indicated a hike next month.
Meanwhile, crude oil prices continued their downward move for 10 straight days to hit a seven-month low.
With Friday's gain of 0.7 per cent, the rupee reversed most of the losses registered during the holiday-shortened week.