Rupee ends higher at 45.92

The rupee on Tuesday not only recovered early losses, but even ended higher against the US currency at Rs 45.92.93 per dollar due to good inflows of funds into the sotck market coupled with weak crude oil prices.

In active trading on the interbank foreign exchange (forex) market, the Indian currency opened weak at Rs 45.97/99 per dollar due to the customary month-end dollar demand and and fell further to a low of Rs 46.01.

Later, the rupee made a smart recovery and after hitting a high of Rs 45.90 per dollar, ended at Rs 45.92/93, higher than the previous close of Rs 45.9450/9550.

Dealers attributed the fag-end recovery in rupee to heavy inflows from foreign institutional investors (FIIs) into the stock markets. The stock markets made a strong reversal with the Bombay Stock Exchange benchmark Sensex bouncing by 147 points to end at over four-month high of 12,321.19.


Fiis as well as retail investors were engaged in rolling over positions to october contract of the futures & options (f&o) and fiis who have been heavy sellers in derivatives for the last couple of days, too were seen covering short positions in the futures.

Similarly fall in crude oil prices also boosted the rupee setiment, dealers said. New york’s main contract, light sweet crude for delivery in november sunk to a low of $59.52 per barrel yesterday which slowed down dollar demand from oil psus against other currencies, the rupee firmed up against the british pound and euro, while turned weak against the yen.

In cross-currency trade, the rupee rose further against the single european unit to rs 58.29/31 per euro from the last day’s close of rs 58.67/69. Similarly, the indian unit also ended firm against the british currency at rs 87.02/04 per pound from yesterday’s close of rs 87.42/44. However, the rupee fall against the japanese yen to rs 39.43/45 per 100 yen from the previous level of rs 39.42/44.

The reserve bank of india (rbi) fixed the reference rate for dollar at rs 45.97 per dollar from the last level of rs 45.86. The central bank fixed the reference rate for the single european unit at rs 58.63 per euro from rs 58.77 yesterday.

The reference rate for the british pound was fixed at rs 87.3246 per pound from rs 87.4481 the previous day and for the yen, the reference rate was fixed at rs 39.51 per 100 yen from the last level of rs 39.46.

The rupee premia on forwared dollar was marginally higher as the benchmark six month payable in february rose to 24-1/2-25-1/2 paise from the last level of 23-24-1/2 and the far-forward maturing in august 2007 was quoted higher at 55-3/4-56-3/4 paise from 53-55 previously.