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The Indian rupee moved further from a two-month peak on Friday as steep losses in the stock market reignited worries foreign investors would sell more holdings against a backdrop of slowing growth.
News that seven small bombs had exploded in the south Indian IT city of Bangalore, killing one woman and wounding at least 15 people, also weighed on sentiment, although the rupee was already under pressure beforehand.
The partially convertible currency ended at 42.26/27 per dollar, 0.3 percent weaker than Thursday's close of 42.13/14. It rose to 41.82 per dollar in intraday deals on Thursday, its highest since May 12.
For the week it ended up 1.2 percent but it is still 6.7 percent down for the year. One-month offshore non-deliverable forwards contracts were quoting at 42.40/42.45 per dollar, weaker than the onshore rate.

Copyright Reuters, 2008

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