The Hindu Business Line : Rupee ends higher

The rupee ended higher against the US dollar on Wednesday, as it tracked the movement of the Sensex. As the equity markets opened higher following the rate cut by the US Federal Reserve, the rupee also opened higher at 40.40 and even touched 40.36. As the Sensex shed the gains, the rupee moved lower to 40.53/54.

"There was heavy dollar buying in the afternoon session", said a forex dealer with a public sector bank. Following this, some bunched-up dollar sales by exchange companies helped the rupee gain to end the day's trade at 40.42/43, against the previous close of 40.50/52. "Exchange companies sold dollars to fund their rupee accounts ahead of the long week-end," said the dealer. Next week the rupee would be under pressure as the stock market would not be able to sustain this positive trend, the dealer said.

In the forwards market, the 6-month premia closed at 1.69 per cent (1.76 per cent) and the 12-month premia at 1.25 per cent (1.27 per cent). - Our Bureau

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