Indian currency, on Friday, declined by five paise to 46.89 versus the US currency on continued buying support for the greenback from bankers.

Traders at the Interbank Foreign Exchange (FOREX) stated that the Indian unit slipped 3 paise during morning.

Finally, it fell to 46.89 as compared to US dollar, lower by 5 paise.

On Friday, Indian bourses clash also impacted the response for the domestic unit. US currency demand from importers side also pressurizes the Indian unit.

The country's central banking institution (Reserve Bank of India) on Friday set the reference rate for the US currency at Rs 46.86, which was up 5 paise as against its last rate of 46.81.

The Euro gained 14 paise to Rs 59.59 a unit as against its last closure at Rs 59.45 a unit.

Six month forward dollar was recorded at 4.72% as compared to 4.80 on previous day, and 1-year was registered at 4.14% as compared to 4.20% on the previous day.

Moreover, the Euro dollar was registered up at Rs 59.62 versus Rs 59.42 a unit as compared the Indian rupee.

In the currency futures market, the most traded near-month dollar-rupee contracts on the NSE and MCX-SX stood at 46.8625, with the total traded volume on the two stock exchanges at around $3.5 billion.