The Indian rupee closed higher for a second straight day on Friday, erasing earlier losses triggered by a fall in local share prices, as exporters sold dollars expecting a further strengthening of the local unit. The partially convertible rupee ended at 46.96/97 per dollar, about 0.5 percent stronger than its 47.21/22 close on Thursday, when it touched a low of 47.6250, its weakest since October 5. It touched an intra-day high of 46.84 on Friday.
"The rupee had weakened in line with the stock market. But, with signs of the rupee's gains seeming sustainable, exporters sold dollars," said a senior dealer with a foreign bank. One-month offshore non-deliverable forward contracts were quoted at 46.99/47.09, weaker than the onshore spot rate. In currency futures, the most traded near-month contracts on the National Stock Exchange and MCX-SX was at 47.07 and 47.06 respectively, from Thursday's 47.28 and 47.2750.