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The rupee strengthened by about 18 paise tracking the general dollar weakness and the gains in the domestic equity market. The lower oil prices also helped the rupee, said dealers. The domestic currency opened at 45.20 and closed at 45.06, against Friday's close of 45.24. According to a forex dealer with a public sector bank, the rupee is trending upwards as oil prices fell to lower than $100 a barrel, on speculation that oil demand would ease following the earthquake in Japan.
In the overseas market, the dollar was weak against currencies such as the euro and the yen. The euro gained against the dollar as the European Union agreed to increase the euro zone bailout fund and also on expectations the European Central Bank will raise rates in April. “Surprisingly, the yen has appreciated post the earthquake. But it is probably due to the strong fiscal measures taken by the Japanese Government. Besides, Japan also has good forex reserves,” the dealer said. In the forward premia market, the one-year premium closed at 6.25 per cent (6.16 per cent).
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