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Forex dealers said strengthening of the euro against the dollar overseas supported the local currency.
Mumbai: The rupee on Friday closed at 61.85 down 31 paise.
The rupee had lost 37 paise to end at a more than three-week low of 62.16 against the dollar on Thursday on month-end demand for the US currency from importers and banks.
Meanwhile, the BSE benchmark Sensex moved up 97.40 points, or 0.46 per cent, to 21,171.99 in early trade on Friday.
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