| Date: |
28-10-2010 |
| Subject: |
Rupee Ends Flat at 44.45/46 Against U.S. Dollar |
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The Indian rupee pared early losses to end flat at 44.45/46 against the U.S. dollar today, with weakness in domestic equity markets offset by late dollar selling and heavy foreign capital inflows.
At the Interbank Foreign Exchange, the domestic currency opened weak at 44.62/63 against the U.S. dollar, compared to its previous close of 44.44/45, before immediately plummeting to a low of 44.65.
Forex dealers attributed the initial fall in the rupee to month-end dollar demand from importers, mainly oil refiners.
However, late dollar selling by exporters and continued investment by foreign funds helped the rupee recover to touch a high of 44.44 before settling the day flat at 44.45/46.
Foreign Institutional Investors (FIIs) have injected a record USD 24.9 billion into domestic equities in the current calender year till October 26.
Meanwhile, the dollar index was up by nearly 0.3 per cent against its six major currency rival in European markets today after the Wall Street journal said the U.S. Federal Reserve was likely to unveil plans for gradual Treasury purchases at its policy meeting next week.
Global crude oil was trading below USD 82 a barrel in London today.
The Bombay Stock Exchange benchmark Sensex today ended down by 216.02 points, or 1.07 per cent, vis-a-vis its previous close.
The rupee premium for the forward dollar remained firm on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in March finished at 132-1/2-134-1/2 paise against 129-1/2-131-1/2 paise on Tuesday and the premium on far-forward contracts maturing in September also closed higher at 249-251 paise, compared to 245-1/2-247-1/2 paise previously.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs. 44.52 and the euro at Rs. 61.47.
In cross-currency trade, the domestic unit rose against the pound sterling, the euro and the Japanese yen.
The rupee recovered to Rs. 70.32/34 against the pound sterling compared to the previous close of Rs. 70.54/56 and also improved further against the euro to Rs. 61.30/32 from Rs. 61.89/91 per euro previously.
It also strengthened against the yen to Rs. 54.45/47 per 100 yen from its last close of Rs. 54.74/76.
Source : thehindu.com
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