Rupee up 4 paise at 45.63/64 Vs dollar

At the Interbank Foreign Exchange (Forex) market,the local currency opened slightly lower at 45.70/71 a dollar from yesterday’s close of 45.67/68. It concluded the day at 45.63/64.

Dealers attributed the initial fall in the rupee to month-end dollar demand,especially from oil refiners.

Alpari Financial Services(India) CEO Pramit Brahmbhatt said,”The rupee ended slightly strong against the US dollar,mainly taking cues from global markets where dollar traded weak against the major currencies. Local equities also closed up by almost 1 per cent,which helped the rupee gain.”

The dollar index was down by over 0.5 per cent against a basket of currencies and New York crude oil was trading near USD 85.5 a barrel in European market.

The Bombay Stock Exchange benchmark Sensex ended higher by nearly 158 points or 0.96 per cent.

However,FIIs have pulled out USD 673.07 million in straight five sessions since August 12,as per Sebi data.

India Forex Advisors CEO said,”The dollar demand for Iran oil payments has almost ebbed and the US currency has started manifesting its weakness. Asian units are strong across the board and this strength has been reflected in the rupee.”

“The Rupee closed stronger at 45.63. The local unit strengthened tracking the Euro which firmed on account of positive German manufacturing data. The local stock markets also ended stronger today. The offshore one month NDF is currently trading 45.73/45.78,” he added.

The rupee premium for the forward dollar rose further on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in January ended slightly better at 77-80 paise from 75-78 paise yesterday. Far-forward contracts maturing in July also closed up at 150-153 paise from 147-149 paise previously.

The RBI fixed the reference rate for the dollar at Rs 45.6890 and the euro at Rs 65.7742.

The rupee ended with minor changes against the pound sterling at 75.38/40 from Monday’s close of Rs 75.39/41 while declined further to Rs 66.08/10 per euro from Rs 65.86/88 previously. It reacted downwards against the Japanese yen to Rs 59.64/66 per 100 yen from last close of Rs 59.48/50.