Fresh dollar selling by exporters strengthened the Indian rupee which appreciated by 15 paise against the Greenback to close at 45.09/10 amid sluggish demand for the U.S. currency.
The local unit opened higher at 45.14/15 a dollar from its last close of 45.24/25 at the Interbank Foreign Exchange (Forex) market and then immediately touched a low of 45.30 per dollar.
However, it recovered later to the day’s high of 45.05 before concluding at 45.09/10 a dollar.
Forex dealers attributed the rise in the rupee value to heavy dollar selling by exporters and some banks.
The dollar eased under pressure in New York yesterday, over Chinese’s rate hike. The dollar index, gauging of six major currencies, was down by 0.54 per cent.
Global crude oil was trading above USD 91 a barrel in overseas today.
Meanwhile, the Indian benchmark Sensex today ended slightly lower by 3.51 points or 0.02 per cent from its previous close.
The rupee premium for the forward dollar ended slightly better on mild paying pressure from banks and corporates.
The benchmark six—month forward dollar premium payable in May closed slightly higher at 126-1/2-128 paise as against 126-1/2-127-1/2 paise previously.
Far-forward contracts maturing in November also settled up at 238-240 paise from 237-239 paise on Monday.
Reserve Bank of India fixed the reference rate for the dollar at Rs. 45.17 and the euro at Rs. 59.75.
The rupee recovered against the pound sterling to Rs. 69.75/77 as against Rs. 69.85/87 yesterday, while it fell further against the euro to Rs. 59.81/83 per euro from Rs. 59.52/54 previously.
It also dropped against the Japanese Yen to Rs. 55.10/12 per 100 yen from 54.63/65 yesterday.