Rupee recovers by 25 paise Vs dlr on firm equities.

MUMBAI: In line with smart rally in local equities amid fresh dollar selling by exporters, the rupee today recovered sharply by 25 paise against the US currency to close at 45.22/23.

Weak dollar overseas too aided the rupee sentiment. The dollar index of six major currencies was down by 0.18 per cent in London today.

In active trade at the Interbank Foreign Exchange (Forex) market, the local unit opened remarkably higher at 45.35/36 a dollar from its previous close of 45.47/48 and immediately touched the day's low of 45.40.

In tandem with continuous firm trend in local stocks, the rupee also rallied further to a high of 45.15 before finishing at 45.22/23, displaying a net gain of 0.55 per cent. Last Friday, it was depreciated by 13 paise.

The BSE benchmark Sensex today ended higher by 171.44 points or 0.86 per cent. Asian indices too settled up today.

Fresh dollar selling by exporters and some banks too helped the rupee recovery.

Meanwhile, global crude oil was trading nearly USD 89.50 a barrel in London today.

The rupee premium for the forward dollar also ended higher on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in May concluded higher at 127-129 paise from 124-126 on Monday.

Far-forward contracts maturing in November also settled up at 230-232 paise from 222-224 paise previously.

Reserve Bank of India fixed the reference rate for the dollar at Rs 45.26 and the euro at Rs 59.61.

The rupee remained firm against the pound sterling and ended at Rs 70.06/08 from Monday's close of Rs 70.73/75 and also improved further to Rs 59.49/51 per euro from Rs 59.82/84 previously.

It, however, recovered against the yen to Rs 54.08/10 per 100 yen from its last close of Rs 54.29/31.

Source : economictimes.indiatimes.com