Rupee recovers by 20 paise against dollar.

MUMBAI: The rupee today recovered sharply by 20 paise to close at a one-week high of 44.94/95 against the US currency on fresh dollar selling by exporters amid smart rally in domestic equities.

Sluggish dollar overseas as well as sustained capital outflows too boosted the rupee sentiment.

In lacklustre trading at the Interbank Foreign Exchange (Forex) market, the domestic unit opened remarkably higher at 44.94/95 as against previous close of 45.14/15.

Later, it was trapped in a narrow range of 44.92 and 45.0550 before settling the day's opening level of 44.94/95.

The Indian benchmark Sensex today ended higher by over 107 points, or 0.55 per cent, after gaining by over 449 points in last two straight trading sessions.

Exporters preferred to sell dollar at current level on persistent fall in dollar value in overseas. In New York, the dollar extended losses yesterday giving up an earlier advanced versus the Euro, Japanese yen and British Pound as US stocks and commodities gained ground.

In London today, the dollar index, gauging of six major currencies, was down by about 0.4 per cent.

Foreign Institutional Investors (FIIs) pulled out USD 912.4 million from equities in five sessions since December 7.

Wholesale price-based inflation dropped to 7.48 per cent in November from 8.58 per cent in the previous month.

The rupee premium for the forward dollar ended slightly lower on fresh receivings by exporters. The benchmark six-month forward dollar premium payable in May eased to 134-136 paise from 135-1/2-137-1/2 paise on Monday.

Far-forward contracts maturing in November also softened to 233-235 paise from 234-236 paise previously.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 45.01 and the euro at Rs 60.31.

The rupee fell back to Rs 71.32/34 against the pound sterling from Monday's close of Rs 71.03/05 and also dropped to Rs 60.52/54 per euro from Rs 59.76/78 previously.

It reacted sharply downwards against the yen to Rs 54.21/23 per 100 yen from its last close of Rs 53.66/68.


Source : timesofindia.indiatimes.com