The Indian rupee gave back early gains on Friday, tracking the euro's fall as concerns about weaker eurozone economies sparked a bout of risk aversion, triggering dollar demand from domestic importers. The partially convertible rupee ended at 46.76/77 per dollar, off a high of 46.55 and little changed from Thursday's close of 46.77/78.
It had touched an intraday low of 46.82. The currency eased 1.3 percent on the week. "All participants are looking at risk aversion. There is lot of money going into treasury bills, which is again a sign of this," said Paresh Nayar, head of foreign exchange and money markets at First Rand Bank in Mumbai.
One-month offshore non-deliverable rupee forward contracts were at 46.77, close to 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 46.85 and 46.8550 respectively, with total traded volumes on both exchanges at a high $5.5 billion.