The Indian rupee recovered from the day's lows on Friday after European leaders reached a deal on tighter eurozone budget rules, and on reports that China's central bank plans to create a new vehicle to manage investment funds. The partially convertible currency closed at 52.03/04 per dollar, down sharply from its close of 51.75/76 on Thursday, after dipping to 52.35 in early trade - a level not seen since November 30. It traded between 51.98 and 52.35.
The rupee hit a record low of 52.73 on November 22 and has shed more than 14 percent of its value this year to remain the worst performer among major Asian currencies. One-month offshore non-deliverable forward contracts were quoted at 52.02, below the onshore spot rate and indicating a bearish near-term outlook.
The one-month onshore forward dollar premium was at 31.00, compared with 28.50 on Thursday, while the three-month was at 77.25, up from 73, and the one-year premium was at 226.25, up from 211.50. 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 at 52.25. Total volume was $5.05 billion.