* Rupee ends at 54.75/76 per dlr vs 54.36/37 on Thursday
* Indian shares fall for second day, end down 0.86 percent
* Rupee falls for fourth week in five
By Subhadip Sircar
MUMBAI, Nov 9 The Indian rupee fell for a second
session on Friday, as the euro gave up its early gains and local
stocks fell after the country's largest lender reported earnings
The local unit, which traded in a tight range for most of
the session, fell after State Bank of India posted its
smallest profit increase t h is year, sending local stocks sharply
India's main stock index ended 0.86 percent lower.
The rupee fell for a second straight week, marking its
fourth week of decline in five, highlighting its vulnerability
to global uncertainties after the euphoria over economic reforms
Sentiment on the Indian rupee has turned bearish
once again after some signs of optimism in the last two months,
a Reuters poll of currency strategists showed.
"The rupee likely to weaken further on global dollar strength
and may touch 55.20 or 55.85 in short term," said Hari
Chandramgathan, a senior foreign exchange dealer with Federal
He, however, said the rupee may find some support around 55
to a dollar.
The partially convertible rupee closed at 54.75/76
p er dollar, 0.7 p ercent weaker than its previous close of
54.36/37. For the week, it ended 1.7 p e rcent lower.
The euro extended losses to hit a two-month low against the
dollar and a fresh one-month trough versus the yen on Friday as
investors sold the single currency on grim economic prospects
and uncertainty over aid to Greece and Spain.
Dealers, however, hope for some near-term dollar inflows
after the government allowed companies to borrow overseas to bid
for telecom spectrum at an auction t h at begins Monday.
Factory data for September as well as headline inflation
data for October next week will be watched for cues.
In the offshore non-deliverable forwards segment, the
one-month contract was at 55.01 w hile the three-month was at
In the currency futures market, the most-traded near-month
dollar/rupee contract on the National Stock Exchange and the
MCX-SX closed around 54.82 w i th a total traded volume of $4.6
bi l lion.
(Editing by Jijo Jacob)