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The rupee pared early gains to end lower at 51.88 against the dollar on large outflows from a private equity firm's stake sale.
Dealers refer to dollar selling related to Carlyle Group's stake sale in mortgage lender HDFC, weakening the rupee against the American currency.
The Indian unit jumped to a near 6-month high to open at 51.46 from Thursday’s close of 51.75 against the dollar after the second round of big-ticket reforms approved by the Cabinet boosted the sentiments.
After touching a day’s high of 51.41 on higher foreign capital inflows, the rupee reversed its trade to an intra-day low of 52.02 per dollar on heavy dollar selling.
The rupee had touched a five-and-a-half month high on Thursday breaching 51 levels to end at 51.75 against the dollar.
"The Indian currency is likely to stay around 51-53 levels in the next 2-3 months,'' said Ashish Parthasarthy, Head of Treasury, HDFC Bank.
Experts say that the rupee can sustain at the current levels in the longer term provided the intent of the reform announcements is translated into projects and investments.
Call rates; G-Secs
The overnight call money rates closed at 7.10 per cent from Thursday’s close of 7.75 per cent. Intra-day it moved in 7.10 to 8.05 per cent range.
The 10-year benchmark 8.15 per cent government bond closed lower at Rs 99.92 (yield: 8.16 per cent) from its previous close of Rs 100 (8.15 per cent) on Thursday.
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