In a lacklustre trade, the rupee on Tuesday checked its 4-session-long losing spree, ending flat at 45.03/04 against the U.S. currency on alternate bouts of buying and selling, despite a firm dollar overseas.
Dealers said that sale of dollars by exporters in the initial stage supported the rupee in the beginning. However, late month-end dollar demand from importers, mainly oil refiners, weighed heavy on it and the rupee fell back to a low of 45.0675 before concluding at its overnight level of 45.03/04.
A firm dollar overseas too put pressure on the rupee in the later part of the day, they added.
The dollar index, gauging of six major currencies, was up by 0.28 per cent while New York crude oil was trading near USD 91 a barrel in the European market.
Meanwhile, the Bombay Stock Exchange Sensex gained 80 points, up for the fourth session in a row to reach 3-week high of 18,492.45, on continuing FII inflows amid a positive trend in the global markets.
Foreign Institutional Investors (FIIs) pumped in USD 732.12 million in three sessions since June 23.
Abhishek Goenka CEO India Forex said: “Rupee traded range bound to slightly strong, mainly taking cues from local equities which traded positively. Dollar demand from oil importers helped dollar to restrict the rupee gain. Globally dollar gained against the major currencies like EUR, GBP & JPY“.
“Looking at the strong dollar one can expect Rupee to trade near 45.50 in coming days and the trading range for the USD/INR will be 44.80 to 45.30 tomorrow,” he added.
Talking about major Asian currencies, Mr. Goenka said that they traded stronger throughout the day. The Korean won rose 0.2 per cent, Malaysia ringgit 0.4 per cent, Taiwan dollar 0.2 per cent and the Philippines peso 0.1 per cent.
“Asian stock market rose today on speculation that Greece may be allowed to roll over some of its bonds, easing concern the nation’s sovereign debt crisis will spread across Europe. The Sensex closed up by 80 points. One month offshore forward contract is quoting at 45.22—27 levels,” he added.
At the Interbank Foreign Exchange (Forex) market, the domestic currency opened higher at 44.98/99 a dollar from last close of 45.03/04 and immediately touched a high of 44.92 on the back of early rally in local equities and increased capital inflows.
The rupee premium for the forward dollar ended steady to better on fresh stray paying pressure from corporates and banks. The benchmark six—month forward dollar premium payable in November settled at 118—120 paise from 118—1/2—120 paise yesterday.
Far—forward contracts maturing in May, however, edged up to 228—230 paise from last close of 227—228—1/2 paise.
The RBI has fixed the reference rate for the dollar at Rs. 45.05 and the euro at Rs. 64.34.
The rupee improved further against the pound sterling to end at Rs. 71.84/86 from Monday’s close of Rs. 71.89/91 and also strengthened against the Japanese yen to Rs. 55.70/72 per 100 yen from Rs 55.80/82 previously.
However, it fell back to Rs. 64.27/29 per euro from last close of Rs 63.97/99.