The Indian rupee dropped to its lowest in 2010 on Friday as rising risk aversion among global investors on concerns about the debt of some European countries saw them pull funds from stocks and emerging markets. The partially convertible rupee ended at 46.73/74 per dollar, having fallen to 46.7650, its lowest since December 30. It fell more than a percent from Thursday's close of 46.24/26.
"The European crisis has increased the bearishness in the rupee," said a senior dealer with a foreign bank. One-month offshore non-deliverable forward rupee contracts ended at 46.80/87, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX ended at 46.7750 and 46.78 respectively.