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The rupee on Wednesday ended higher by 8 paise to 45.00/01 against the US currency on fresh sale of dollars by banks amid a firm trend in the equity market, despite gains registered by the dollar overseas.
Forex dealers said that fresh sale of dollars by banks on hopes of capital inflows from foreign funds in view of a firm trend in the equity market supported the rupee’s rise against the greenback.
Helped by abating political worries and softening global crude oil prices the Bombay Stock Exchange benchmark Sensex settled at 18,469.95 points, a gain of 30.30 points, or 0.16 per cent, from its last close.
Meanwhile, crude oil prices softened to about $104 to a barrel on the New York Mercantile Exchange. In London, the euro fell against the dollar today settling well below four-month highs as investors switched their focus back to the euro zone’s debt problems and away from expectations of a rise in interest rates.
The dollar rose against the euro in the New York market yesterday over fears that some euro zone states won’t be able to withstand higher interest rates, though further gains will likely require the Federal Reserve to adopt a tighter policy.
The Indian rupee resumed slightly higher at 45.05/06 a dollar as against yesterday’s closing level of 45.08/09 and firmed up further to 44.95 before settling at 45.00/01 per dollar. The rupee moved in a range between 44.95 and 45.10 a dollar during the day.
The rupee premium for the forward dollar ended slightly higher. The benchmark six-month forward dollar premium payable in August closed at 139-141 paise as against 137-1/2-139-1/2 paise previously.
Far-forward contracts maturing in February settled at 271-273 as against 268-1/2-270-1/2 paise yesterday. The Reserve Bank of India has fixed the reference rate for the dollar at Rs 45.02 and the euro at Rs 62.54.
The rupee firmed up further to Rs 72.90/91 against the pound sterling from Rs 72.93/95 yesterday and moved up against the euro to 62.62/64 a euro from Rs 62.79/81 a euro previously. It also firmed up against the yen to Rs 54.35/37 for 100 yen from its last close of Rs 54.60/62.
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