Rupee ends at 4-week high against USD.

MUMBAI: The Indian rupee today rallied by 10 paise to a four-week high of 46.54/55 against the US dollar amid a sharp surge in domestic equities and sluggishness of the American currency overseas.

At the Interbank Foreign Exchange, the domestic currency opened on a strong note at 46.55/56 a dollar from last Friday's close of 46.64/65 and improved further to a high of 46.45 on the back of a steep rise in local equities.

However, late dollar demand from importers pulled the rupee down to finish at 46.54/55, its highest close since August 10, 2010. The Indian rupee has gained a total of 52 paise, or 1.10 per cent, against the American currency in the last four sessions.

The Indian benchmark Sensex opened lower today, but bounced back immediately and made further headway to settle at a 31-month high of 18,560.05, a net rise of 338.62 points, or 1.86 per cent. Other Asian peers also ended in positive terrain today.

Foreign Institutional Investors (FIIs)  who invested nearly USD 2.4 billion in the month of August, which was the primary factor responsible for the rupee's rise  pumped in USD 248.18 million in the first three days of the current month.

The dollar failed to retain the gains made after the announcement of better-than-expected US payrolls data late last weekend and was down against its major rivals in London today, aiding the rupee sentiment.

Meanwhile, global crude was trading at around USD 74 a barrel in London today.

The rupee premium for the forward dollar ended strong on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in February finished higher at 113-1/2-115-1/2 paise from 110-1/2-112 paise last weekend and far-forward maturing in August hardened to 208-210 paise from 199-201 paise previously.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 46.48 and the euro at Rs 60.01.

In cross-currency trade, the domestic unit ended mixed against the pound sterling, the euro and the Japanese yen.

The rupee strengthened to Rs 71.48/50 against the pound sterling from last Friday's close of Rs 71.85/87 and held steady at Rs 59.89/91 against the euro.

It, however, fell back slightly against the yen to Rs 55.27/29 per 100 yen from the last close of Rs 55.22/24.

Source : economictimes.indiatimes.com