MUMBAI, Dec 20: The rupee snapped a three-day winning streak on Thursday to end weaker on steady dollar purchases by state-run banks, dealers said.

The rupee ended at 47.7950/8100 per dollar, weaker than the previous close of 47.7650/7700.

The local currency had been gaining in the past three trading sessions on steady foreign direct investments and expatriate inflows, most of which have been absorbed by state-run banks, which usually act on behalf of the central bank.

But traders said Thursday’s dollar purchases by state-run banks were on behalf of their corporate clients.

They said lingering concerns of a flare-up in tensions between India and Pakistan, following last week’s suicide attacks on New Delhi.

India’s relatively closed currency market was unperturbed by the deepening crisis in Argentina, with most dealers saying they had already discounted any possible spillover effects on the rupee.

The rupee had marginally weakened in early trade as banks squared positions initiated on Wednesday to benefit from weekend swap differentials.—Reuters