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The Indian rupee weakened on Friday weighed down by losses in local shares and oil importers' demand for the dollar, but came off the day's low as the euro steadied against the greenback. The partially convertible rupee closed 44.5325/5425 per dollar, 0.1 percent weaker than Thursday's close of 44.4950/5050. It had moved in a narrow band of 44.4725-44.5850.
The one-month onshore forward premium was at 26 points from 24 on Thursday, while the three-month was steady at 70.25 points and the one-year was at 229.50 points versus 231.50. 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 was at 44.6000, while those on the MCX-SX and the United Stock Exchange were both at 44.6025. The total volume was at $8.62 billion.

Copyright Reuters, 2011

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