MUMBAI: The Indian rupee weakened for a second session on Friday on the back of dollar demand from oil and defence firms as well as other companies while the global risk-off mood also prompted short-covering of dollar positions.
Broad optimism seen over the US "fiscal cliff" deal at the start of 2013 began to fade after Federal Reserve officials raised concerns about possible side effects of the stimulus progamme, dragging global shares lower.
The tepid weekly performance in the rupee comes after data on Monday showed the current account deficit widened to a record high in the July-September quarter, reviving worries about India's twin deficits and potentially constraining the rupee's gains.
