It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
The key Indian equity indices closed in the green on Friday supported by healthy buying activity in the auto stocks and a recovery in the rupee from its from its previous close.
The rupee traded around 71.70 per dollar (3.50 p.m.), against the previous close of 71.99 per greenback.
Healthy buying was witnessed in the auto index, which surged by 501.93 points, followed by metal and healthcare indices.
At 3.30 p.m., the Nifty50 on the National Stock Exchange provisionally closed at 11,589.10 points, higher by 52.20 points or 0.45 per cent from its previous close of 11,536.90 points.
The benchmark S&P BSE Sensex, which had opened at 38,314.55 points, provisionally closed at 38,389.82 points, higher by 147.01 points or 0.38 per cent from the previous close of 38,242.81 points.
It touched an intra-day high of 38,421.56 points and a low of 38,067.22 points.
The top gainers on Sensex were Bharti Airtel, Hero MotoCorp, Bajaj Auto, Mahindra and Mahindra, Tata Motors (DVR) while Yes Bank, Power Grid, State Bank of India, Adani Ports and Sun pharma were among the major losers.