Heavy buying of American dollar by the importers led to the fall in the value of Indian rupee on Friday. This happened because the Euro continued to face stiff falling pressures.

But the strong performance by the Indian stock markets gave it some support and stopped the loss for Indian rupee.

As per the last data available, the rupee ended at 46.84/85 for every dollar. This is 0.3 per cent lower than its close on Thursday that was at 46.69/7. For the whole of Friday, the rupee traded in the range of 46.5650 and 46.87. If taken for the whole year, the rupee has gone down by 1 per cent.

Talking about this trend experts believe that the Euro's fall has raise risk-aversion and that has brought trouble for the currencies in the emerging markets. India is not left far behind.

Because of the rising expectations from the US job market, the dollar rose while taking down with it the Euro that was trading at its four-year low.

Meanwhile, the rupee has gone down by 3.4 per cent in May because of the rising outflow of money. In 2010, the foreigners bought $4.5 billion worth of shares.