The rupee weakened in afternoon session on Friday on global demand for the euro which breached a key technical level while rising to one-month high against the dollar
Some dollar-buying by state-run banks to pay for defence purchases also weighed
At 2:25 p.m., the partially convertible rupee was at 45.30/31 per dollar, weaker than 45.24/25 at close on Thursday, when it rose as much as 45.04, its best since Jan. 4.
The euro rose to a one-month high versus the U.S. dollar on Friday
The index of the dollar against six major currencies was down 0.3 percent at 78.928 points. The euro rose to $1.3426 from $1.3360 at previous close.
Flip-flopping shares in the domestic market also added to the pressure, dealers said. The 30-share benchmark index was down 0.8 percent, with financials leading the fall after inflation data.
One-month offshore non-deliverable forward contracts were quoted at 45.58, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, MCX-SX and United Stock Exchange were all at 45.4050, with the total traded volume on the three exchanges at about $4.3 billion.
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