Indian rupee snaps a two-day fall

The Indian rupee, which fell over the week after showing a net rise for six straight weeks, snapped a two-day fall to strengthen on Friday as a rise in local share prices raised expectations of more capital inflows.
The partially convertible rupee ended at 46.50/51 per dollar, off an intraday high of 46.40, and about 0.5 percent stronger than its close of 46.735/745 on Thursday, when it had dropped as low as 46.82, its lowest since October 7. "A positive close for equities helped sentiment. But outlook for local equities is still uncertain," said a trader with a foreign bank.
One-month offshore non-deliverable forward contracts were quoting at 46.56/66, weaker than the onshore rate. In currency futures, the active near-month contracts on the National Stock Exchange and MCX-SX were at 46.5175 and 46.5075 respectively, stronger than Thursday's 46.76.