The 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 year end.
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% this week. One-month offshore non-deliverable forward contracts were quoted at 53.43, suggesting some more short-term weakness in the onshore spot rate.
Bond yields rose on Friday as dealers booked profits after a brief rally in prices in the previous session, with tight liquidity also weighing, although bearishness is seen temporary on an expected easing of cash conditions.
The benchmark 10-year bond yield ended at 8.37%, higher than its 8.33% close on Thursday, when it had touched a low of 8.30%. It moved in a 8.35-8.40% band on Friday. Total volume on RBI's electronic trading platform was a high Rs 13,455 crore ($2.54 billion) .
Banks borrowed Rs 1.733 lakh crore ($32.9 billion) from RBI's liquidity adjustment facility on Friday, the highest since 2009, reflecting the cash deficit in the banking system.
