The Indian rupee ended down but off a near two-month low that followed a slide in domestic stocks, strong demand for the dollar by oil importing companies and lacklustre interest from foreign investors. Dealers expect the rupee to remain in a bear grip for the next few months on likely negative stocks.
The partially convertible rupee ended at 45.7525/7625 per dollar, after falling to 45.8450, its lowest since December 1 and 0.4 percent weaker than Thursday's close of 45.57/58. The one-month forward dollar premium ended at 22.25 points, steady from Thursday's close, while the one-year premium ended at 263.75 points from previous 261 points.
One-month offshore non-deliverable forward contracts were quoted at 46.08, 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 45.98 and United Stock Exchange at 45.9875. Total traded volume was $6.5 billion.