The rupee weakened against the dollar to levels seen last in December, but dollar selling by exporters helped stem the losses.
There was no sign of intervention by the Reserve Bank of India, said dealers. But it is unlikely that the central bank will allow the rupee to depreciate sharply.
The rupee weakened to 52.2 in early trade but gained later on to 51.96. It had closed at 52.15/16 on Thursday.
According to a forex dealer, neither the domestic economic situation nor global scenario is giving any comfort for the rupee. But today’s closing price will give some indication for the rupee’s levels next week.
“The rupee should hold at levels of 52.50. If it falls below that it could be worrying,’’ the dealer said.