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The rupee is trading at 60.85/86 versus its previous close of 61.07/08 as large dollar inflows from an infrastructure development company hurt.
Losses in the domestic sharemarket, however, helped limit a very sharp fall in the pair. Local shares are trading down 0.9% after a marginally stronger start.
Traders will continue to monitor shares for clues on the direction of foreign fund flows.
Most emerging Asian currencies also edged up on Friday with the dollar's broad weakness, but were set to suffer weekly slides as the Chinese yuan lost ground to hit another 16-month low.
