The Indian rupee pared some of its weekly losses against the dollar on Friday as escalating trade tensions between two of the world's largest economies weighed on the greenback.
Sentiment also soured after the domestic equity indices fell to five-month lows as recent political developments dispelled the aura of invincibility of Prime Minister Narendra Modi.
The local currency ended the week 0.11 percent lower after rising 0.35 percent in the previous week.
Meanwhile, bond yields fell for the third session to hit a five-week low ahead of the April-September bond auction calendar. The 10-year bond yield ended little changed at 7.56 percent after slipping to 7.52 percent intraday.
The country's foreign exchange reserves dropped by $152.4 million to $421.3 billion in the week to March 16 on account of a fall in foreign currency assets, the Reserve Bank of India said.
Next week, investors will focus on commentary from policymakers in the U.S. and the U.K. They will also keep an eye out for the U.S. GDP and India's fiscal deficit data.
Indian markets will remain shut on Thursday and Friday.
The following events are likely to affect the currency markets:
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