Rupee ends flat at 44.43/44 against dollar

July 05, 2011 07:31 pm | Updated November 17, 2021 01:34 am IST - Mumbai

The rupee on Tuesday ended flat at 44.43/44 against the U.S. dollar after a volatile trade amid the U.S. currency rising in the overseas markets, and weakness in domestic stock markets.

At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 44.47/48.

Later, it bounced back to a high of 44.38 before settling at 44.43/44, one paise down from its previous close.

In the last four trading sessions in a row, the rupee had gained 61 paise or 1.35 per cent.

Renewed dollar demand from banks and some corporates in view of the firming dollar in overseas markets mainly affected the rupee value against the dollar, a forex dealer said.

The early fall in the rupee due to fresh dollar demand from importers and corporates amidst a firm U.S. dollar overseas was wiped out after the mid-session following late dollar selling by exporters and sustained heavy capital inflows, he added.

Alpari Financial Services (India) CEO Pramit Brahmbhatt said, “Rupee recovered its initial losses after mid-session but ended a tad lower. Heavy foreign funds inflow limited the rupee fall.”

In the Asian market the U.S. currency gained against the euro and yen today as the demand of the Greenback as an alternative investment option soared as concerns over a possible rate hike by China dampened the investor sentiment.

The dollar index, gauging of six major currencies, was up by 0.25 per cent, with investors still wary of Europe’s sovereign debt problems while New York crude oil was trading near U.S.D 95.5 a barrel in European market today.

Meanwhile, the Bombay Stock Exchange benchmark Sensex fell 70 points to 18,745 today as investors booked profits

Foreign Institutional Investors (FIIs) bought shares worth nearly USD 2.0 billion in last eight days since June 23, which mainly supported the rupee.

The rupee premium for the forward dollar ended lower on fresh receivings by exporters. The benchmark six—month forward dollar premium payable in December ended down at 144-146 paise from 146-148 paise on Monday.

Far-forward contracts maturing in June also finished weak at 253-255 paise from 256-258 paise previously.

The RBI has fixed the reference rate for the dollar at Rs. 44.4988 and the euro at Rs. 64.3968.

The rupee eased further against the pound sterling to end at Rs. 71.55/57 from Monday’s close of Rs. 71.51/53 while held firm at Rs. 64.28/30 per euro from Rs. 64.48/50 previously.

It also improved further against the Japanese yen to Rs. 54.75/77 per 100 yen from last close of Rs. 55.04/06.

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