Rupee rises 5 paise on Budget day

The rupee on Monday appreciated by another five paise to close at 45.27/28 against the US dollar on the Union Budget day, following firm equities amid mild sale of dollars by exporters and a weak American currency overseas.

At the Inter-bank Foreign Exchange (Forex) market, the local unit opened better at 45.30/31 a dollar from previous close of 45.32/33, and immediately touched a low of 45.35 on initial hesitancy in equities.

However, it recovered later in line with a smart rise in local stock prices due to some favourable announcements for industries and touched a high of 45.1750. The Bombay Stock Exchange benchmark Sensex was up by over 595 points in late mid-session trade.

Some sale of dollars by exporters and a weakness in US currency overseas, too, helped the rupee rise. However, higher global crude oil prices forced importers to buy dollar in small lots, stemming the rupee rise to a certain extent.

Meanwhile, dollar hit over 3-month low against its major six rivals due to rising global crude oil prices which was trading above $98 a barrel in London on Monday.

Foreign Institutional Investors (FIIs) pulled out $603.59 million in the last week.

The rupee premium for the forward dollar closed slightly lower on fresh receivings by exporters.

Far forward contracts maturing in February also ended down at 273-275 paise from 275-277 paise previously.

The RBI has fixed the reference rate for the dollar at Rs 45.18 and the euro at Rs 62.15.