Rupee seen slipping on outflow concerns

The rupee is expected to weaken on Friday, a day after it snapped an eight-session losing streak, as global risk-off sentiment will likely prompt investors to pull out of equities.

Asian shares and the euro were hovering near seven-week lows as European officials failed to soothe investor fears that the euro zone's debt crisis could trigger a credit crunch if funding costs run out of control.

At 0220 GMT, the MSCI index of Asian shares ex-Japan was down 0.8%, while the Nifty India stock futures traded in Singapore were 1.1% lower, suggesting a subdued start to the domestic market.

The euro was trading at USD 1.3326, compared with USD 1.3383 at end of rupee trade on Thursday, while the index of the dollar against six major currencies was at 79.179 points versus 78.855 points.

The rupee is expected to open around 52.20 per dollar, and move in a range of 52.00 to 52.40 initially, traders said. The unit had closed 0.6% stronger on Thursday at 52.065/075.

The currency has lost more than 14% this year, the most in Asia, and had hit an all-time low of 52.73 on Tuesday.