The Indian rupee fell for a fourth day on Friday, but pulled back from a two-week low struck early as exporters cashed in their dollars in the belief the drop was overdone. The partially convertible rupee closed 0.2 percent weaker at 46.15/16 per dollar from previous day's 46.04/05. The unit fell as low as 46.2750 in early deals, its lowest since January 5. For the week, it fell about 0.8 percent.

"There was good interest on both sides. There was some dollar buying from oil firms but there was good exporter selling. There wasn't much of commercial flows though," said R.K. Gurumurthy, head of treasury, at ING Vysya Bank. One-month offshore non-deliverable forward contracts were at 46.21/31, weaker than the onshore closing rate. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX closed at 46.1800, with the total traded volume on the two exchanges at about $6.5 billion.

Copyright Reuters, 2010