The Indian rupee closed stronger on Friday, ending the week with a 0.7 percent gain as foreign investors bought local debt, but analysts said the local unit will remain under pressure in the near term. The partially convertible rupee ended at 52.7150/7250 to the dollar, 0.5 percent stronger than Thursday's close of 52.98/99, after moving in a 52.70 to 52.95 percent band.
"People are looking for cues like an improvement in general risk appetite, including the situation in Europe, measures to improve India's fiscal deficit, and stock flows," said Chin Thio, senior FX strategist, BNP Paribas in Singapore. One-month offshore non-deliverable forward contracts were quoted at 53.02, indicating more weakness in the short-term in the onshore spot rate. In the currency futures market, the most-traded near-month dollar-rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange were all around 52.96, on total volume of $3.04 billion.
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