Rupee off one-month low on suspected intervention

Caution is likely to prevail ahead of key economic indicators later this month. India is set to post November factory data on January 10,followed by consumer and wholesale inflation for December later in the month.

The data will be key in determining whether the central bank raises interest rates at its policy review on January 28.

The US yields have been rising which has caused a risk aversion scenario amongst markets on fears of further tapering. The Indian stock markets also fell but recovered towards the closing and nationalised banks sold dollars to check the depreciation of the rupee, said Anil Kumar Bhansali,vice-president at Meclai Financial.

The partially convertible rupee closed at 62.16/17 per dollar compared with 62.26/27 on Thursday.

For the week,the rupee dropped 0.5 per cent,its second weekly fall in four.

The BSE Sensex and Nifty fell on Friday to mark their biggest weekly decline in eight as profit-taking hit blue chips such as Reliance Industries for a third consecutive day,extending the weak start to 2014.

The rupee has already shed 0.6 per cent in the new.