The Indian rupee snapped a six-day rally to end slightly weaker on Friday after the dollar's bounce overseas spurred some demand for the US currency. The rupee closed the week at 44.1300/1400 per dollar, 0.03 percent weaker than Thursday's seven-month closing high of 44.1050/1250 but well up from a session low of 44.2700.
"We should see the rupee in a broad 44 to 44.25 range for the next few sessions," he said.
The rupee ended the week 1.96 percent stronger. A surge of overseas portfolio investment in the share market helped underpin the rally. Foreign funds' net purchases of local shares are at a record high of nearly $7.3 billion for 2004.
The local currency's close on Thursday was its strongest finish since 44.0350/0450 on April 23. Rupee premiums on forward dollars ended higher amid stepped up hedging by local corporates who have been borrowing overseas. This follows a central bank warning to banks earlier this week on limiting unhedged foreign currency exposures.