The Indian rupee fell on Friday, snapping three successive weeks of gains, as risk aversion pummelled global risk assets such as the euro, though buying of the local unit ahead of an auction of debt limits to foreign investors kept losses in check. "I expect the rupee to appreciate in future. The government may come out with reform measures very soon to reduce the deficit and encourage inflows," said Ssharad D. Pawaar, chief executive at SPFX India, a forex advisory firm.
The partially convertible rupee closed at 55.32/33 per dollar, as per the SBI closing rate, weaker than its close of 55.12/13 on Thursday. The one-month offshore non-deliverable forward contracts were around 55.57 while the three-month was at 56.19. In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and United Stock Exchange all closed at around 55.39 with the total traded volume at around $3.8 billion.