Indian rupee gives up gains

The Indian rupee snapped a two-day slide on Friday but still ended near 2006 lows after failing to hold at early session highs on sustained dollar demand from oil importers and on foreign fund outflows.
Foreign investors have been cutting positions in emerging markets due to growing risk aversion and they have sold a net $2.4 billion worth of Indian stocks over 11 sessions to Thursday, slicing their investment to $2.4 billion since the start of 2006.
The partially convertible rupee ended at 45.88/8850 per dollar, marginally higher than the previous day's close of 45.91/92. The rupee had hit a 2006 trough of 45.95 on Thursday, at which level it had lost nearly 2 percent this year.
The rupee has lost 0.7 percent during the week as foreign funds pare holdings of Indian stocks.