The Indian rupee tumbled from a one-week high on Thursday as debt problems in Dubai hit the stock market, boosted the dollar and raised concerns that risk aversion may temper foreign inflows. The partially convertible rupee ended at 46.44/45 per dollar, off an early peak of 46.1350 which was its strongest since Nov. 17 and weaker than Wednesday's close of 46.21/22.
"The stock market's sharp fall hurt sentiment. The market would be closely watching the Dubai developments," said a senior trader with a foreign bank who thought the impact would be temporary. One-month offshore non-deliverable forward rupee contracts were at 46.48/58, close to the spot rate. In currency futures, the most traded near-month contracts on the National Stock Exchange and MCX-SX were at 46.54 on both exchanges, from Wednesday's 46.24.