The Indian rupee strengthened on Friday supported by strong dollar inflows which helped offset the impact of weak domestic shares and a faster-than-expected rise in March inflation. The partially convertible rupee ended at 44.3250/3350 per dollar, 0.4 percent stronger than Wednesday's close of 44.50/51. But, on the week, the Indian unit ended 0.61 percent weaker.
The forex market was closed on Tuesday and Thursday for local holidays. "There were corporate (dollar) inflows today," said Sudarshana Bhat, head of forex trading at the state-run Corporation Bank. The one-month onshore forward premium was at 25.75 basis points versus its previous close of 25.50. The three-month was at 82.75 basis points versus 79.50 and the one-year was at 315.25 basis points compared with 300.00 close on Wednesday.
The one-month offshore non-deliverable forward contracts were quoted at 44.70, weaker than the onshore spot rate. In the currency futures market , the most traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were at 44.4150, 44.4300 and 44.4225 respectively, with total volume at 8.18 billion.
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