The rupee on Wednesday appreciated by 17 paise to close at a one-week high of 44.86/87 against the US currency on sustained foreign fund inflows amid selling of dollars by exporters.
The local currency started the day strong and lost of some of the steam t o trade at 45.00. Later, it rebounded to conclude the day at 44.86/87, higher by 17 paise from its last close of 45.03/04.
Exporters and banks preferred to reduce their dollar position on expectations of a further fall in its value, while sustained capital inflows too boosted the rupee sentiment, a forex dealer said.
Weakness in dollar in the overseas markts aided the rupee sentiment, too, he added.
India Forex Advisors CEO Mr Abhishek Goenka said, “The rupee closed stronger today tracking strong euro and positive stocks. All Asian currencies were trading higher in afternoon, with Australian dollar being the star performer amongst the majors mainly on speculation of austerity measures package being passed by the Greek Parliament today.”
The dollar index was down by 0.37 per cent against a basket of currencies in European market as euro rose on hopes that Greek Parliament would vote in favour of an austerity package.
Meanwhile, the benchmark Sensex of the Bombay Stock Exchange rose for the fifth day in succession on sustained capital inflows. It closed the day at 18,694 up 201 points.
Foreign Institutional Investors (FIIs) bought shares worth $957.66 million between June 23 and 28.
Alpari Financial Services CEO Mr Pramit Brahmbhatt said, “Expect USD-INR pair to trade near 45.00 levels and the trading range for the USD-INR will be 44.70 to 45.20 tomorrow,”
Meanwhile, New York crude oil was trading below $94 a barrel in London today.
The rupee premium for the forward dollar rule steady to better for the second day on stray paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in November closed at 118-119-1/2 paise from 118-120 paise previously.
Far-forward contracts maturing in May, however, improved further to 230-1/2-232-1/2 paise from 228-230 paise.
The RBI has fixed the reference rate for the dollar at Rs 44.94 and the euro at Rs 64.60.
The rupee turned negative against the pound sterling to end at Rs 71.92/94 from Tuesday’s close of Rs 71.84/86 while dropped further to Rs 64.73/75 per euro from Rs 64.27/29 previously.
It, however, improved further against the Japanese yen to Rs 55.38/40 per 100 yen from last close of Rs 55.70/72.