Rupee ends lower, skids for third straight week

Mumbai, December 23
The Indian rupee ended weaker on Friday, posting its third straight week of losses, as concerns over slowing growth pushed domestic equities lower and as importers stepped up dollar buys for monthend payments.
Volumes in the dollar-rupee market were thin, with traders preferring to stay on the sidelines ahead of the yearend.
Actions taken by the Reserve Bank of India over the last few days to curb speculation in the currency that hit a record low of 54.30 to the dollar on Dec 15 kept trading appetite subdued, dealers said.
The rupee ended at 52.9600/9675 to the dollar, weaker compared with Thursday's close of 52.7200/7300. It had touched a high of 52.6350 in opening trades. The unit has lost 0.5 percent this week.
"The RBI moves and the yearend factor have caused volumes to drop (in dollar-rupee trade)," said a senior foreign exchange trader at a large private sector bank. "This situation is likely to continue till the new year begins. Until then rupee should move in 52 to 53 band," he said.
Although investors slightly increased their bearish bets against the Indian rupee compared to two weeks ago, a Reuters poll showed on Friday, many analysts think most potential negative factors have been taken into account.
"We believe the depreciation momentum is petering out and the rupee should find a top around current levels of 52.50-53.50," said Abheek Barua, chief economist at HDFC Bank in a research note on Friday. He added the RBI's recent steps to curb speculation have reduced volatility in the dollar-rupee market. 

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