The Indian rupee's five-day winning streak that had taken it to one-year highs ended on Friday as a stumble in the stock market and a recovery in the dollar gave investors the opportunity to close some positions. The partially convertible rupee ended at 46.40/42 per dollar, slightly weaker than Thursday's close of 46.34/35.
On Thursday, the rupee had risen as high as 46.22, its strongest since September 26, 2009. One-year non-deliverable forwards are pricing in a 1.3 percent slide in the rupee from current levels, compared with a 2 percent decline at end-July, reflecting the changing sentiment.
In currency futures, the active near-month contracts on the National Stock Exchange and MCX-SX ended at 46.6750 and 46.6750 respectively, and total volume was $2.1 billion, half the record $4.4 billion volume seen earlier this week.