Mumbai: Mumbai: The Indian rupee on Friday closed stronger against the US dollar tracking Asian peers which gained as the outlook for a trade deal between the US and China improved.

Home currency closed at 71.79 a dollar, up 0.25% from Thursday's close of 71.97. The Indian unit opened 71.81 a dollar.

The Supreme Court (SC) on Friday, set aside the National Company Law Appellate Tribunal (NCLAT) order that had brought operational creditors on par with financial creditors in the matter. The SC order paves way for ArcelorMittal to acquire insolvent Essar Steel. The sale is expected to involve about $6 billion of inflows to the forex market.

In the year so far, the rupee has weakened 2.81%, while foreign investors have bought nearly $12.03 billion in Indian equities and $5.23 billion in debt.

Benchmark index, Sensex closed 0.17% or 70.21 points up to close at 40,356.69. Year to date, it has gained 11.89%.

The yield on the 10-year Indian government bond was at 6.524% compared with its previous close of 6.52%.

Asian currencies were trading higher. South Korean won was up 0.23%, Philippines peso 0.17%, China offshore 0.11%, Malaysian ringgit 0.10%, China Renminbi 0.09%, Indonesian rupiah 0.08%, Taiwan Dollar 0.07%, Singapore dollar 0.02% and Hong Kong Dollar 0.01%. However, Japanese yen was down 0.21% and Thai Baht 0.16%.

White House economic adviser Larry Kudlow said negotiations over the first phase of a trade agreement with China were entering the final stages. Kudlow said a deal is “close".

The dollar index, which measures the US currency’s strength against a basket of major currencies, was at 98.141, down 0.02% from its previous close of 98.163.

(Bloomberg contributed to this story)

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