Rupee gains 4 paise against dollar in thin trade

MUMBAI: In a thin trade, the rupee on Wednesday rose by four paise to close at more than a one-week high of 44.45/46 against the US currency following a weak dollar overseas amid fresh capital inflows, despite weak local equities.

At the Interbank Foreign Exchange (Forex) market, the local unit opened better at 44.45/46 a dollar. It settled the day at 44.45/46.

Yesterday, the local unit had ended eight paise up. Forex dealers said that weakness in the American currency in global markets amid fresh inflow of funds by Foreign Institutional Investors (FIIs) in the domestic equity markets aided the rupee sentiment.

Sustained dollar selling by exporters too helped the rupee rally, they added.

India Forex Advisors CEO Abhishek Goenka said,"The rupee traded in very narrow range today and ended at 44.45. All Asian currencies were stronger this afternoon."

Alpari Financial Services (India) CEO Pramit Brahmbhatt said, "The Euro rose in the later part of trade with investors hopeful that European leaders will reach some kind of deal to ease the debt problems in Greece at the summit tomorrow. Local equities ended weak."

In the New York, the US Dollar lost ground against most of its rivals yesterday as appetite for risky assets revived, partly on hopes that European officials will make progress in containing the region's debt crisis.

The dollar index was quoting lower by 0.28 per cent against a currency baskets and the New York crude oil was trading below USD 99 a barrel in European market today.