Some foreign investors also booked forwards to hedge their exposure, amid a trend of foreign outflows in other Asian peers in the wake of a rise in U.S. Treasury yields.
"Some investors made forward booking for equity-related outflows before exporters sold dollars, which prevented furtherdepreciation," a currency dealer said on condition of anonymity.
"There is still depreciation pressure on the rupee."
The rupee fell 0.33 percent this week, after losing 1.6 percent last week, which currency dealers attributed to foreigninvestors selling debt as part of a broader selloff in emerging markets.
The local currency has weakened 1.1 percent so far this year, following a 10.7 percent depreciation in 2012 as the central bank opted for a flexible exchange rate regime in February 2012.
Sri Lanka's main stock index fell to a near seven-week low as some foreign investors cashed in their risky Sri Lankan assets while retail investors took profits.
The bourse ended 0.9 percent, or 56.17 points, weaker at 6,155.27, its lowest since May 6 on concerns of a possible pullout by more foreign funds.
The market witnessed net foreign inflows of 167.5 million rupees ($1.31 million) on Friday, extending net foreign buying in shares to 16.2 billion rupees so far this year.
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