The rupee on Friday surged 43 paise to close at 73.39 against the dollar, its best closing level in nearly six months, buoyed by sustained foreign fund inflows and weaker greenback against key rivals.

At the interbank forex market, the domestic unit opened on a flat note but soon gained strength and finally ended 43 paise higher at 73.39 against the American currency — the best closing level since March 5.

During the day, the local unit touched an intra-day high of 73.29 and a low of 73.87.

Also, this was the third consecutive day of gains for the rupee, during which it advanced 94 paise.

On a weekly basis, the Indian currency appreciated 145 paise against the dollar.

Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,004.11 crore on Friday, according to exchange data.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.72 per cent to 92.33.

Brent crude futures, the global oil benchmark, fell 0.33 per cent to $44.94 per barrel.

A sharp appreciation has been witnessed in the rupee amid persistent portfolio inflows and as the domestic currency was eventually seen mirroring the decline in the dollar index, said Sugandha Sachdeva of Religare Broking.