The rupee traded at 63.02/63.04 versus its close of 62.93/94, after foreign institutional investors (FIIs) sold a net Rs. 59.8 crore in shares on Thursday to snap a 32-day buying streak that totalled Rs. 23,884 crore as per exchange and regulatory data.
India is dependent on foreign flows to fund its large current account deficit, which has been the biggest drag on the currency.
Traders said continued weakness could spark intervention from the central bank.
Rallies in U.S. and Japan stock markets are also sparking talk of a shift by global investors to developed markets, with emerging countries with current account deficits such as India seen as vulnerable to future Fed tapering.
USD/INR gains also reflecting demand from state-run oil companies, traders said.
Still, the Nifty gained 0.5 per cent, recovering from its biggest single-day percentage fall in nearly two months on Thursday, putting a lid on USD/INR gains.
The rupee is seen in a range of 62.70/63.30 for the session, traders said.
India is dependent on foreign flows to fund its large current account deficit, which has been the biggest drag on the currency.
Traders said continued weakness could spark intervention from the central bank.
Rallies in U.S. and Japan stock markets are also sparking talk of a shift by global investors to developed markets, with emerging countries with current account deficits such as India seen as vulnerable to future Fed tapering.
USD/INR gains also reflecting demand from state-run oil companies, traders said.
Still, the Nifty gained 0.5 per cent, recovering from its biggest single-day percentage fall in nearly two months on Thursday, putting a lid on USD/INR gains.
The rupee is seen in a range of 62.70/63.30 for the session, traders said.
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