The rupee today completed its six-session-long rally and closed 18 paise up at an over three-week high of 45.30/31 against the U.S. currency on sustained sale of dollars by exporters and banks amid a weak greenback overseas.
Forex dealers said that there was sustained dollar selling by exporters and some banks on the back of weak dollar overseas, which mainly supported the rupee rise.
Lack of any major dollar demand from importers, mainly oil refiners, also aided the rupee sentiment, they added.
Global crude oil was trading above $ 86 a barrel in London today.
Meanwhile, the Bombay Stock Exchange benchmark Sensex closed sharply lower by 261.49 points or 1.45 per cent to 7-month low on all-round sell-off on fears of further hike in interest rates by the apex bank to tame the escalating inflation.
In active trade at the Interbank Foreign Exchange (Forex) market, the local currency opened strong at 45.37/38 a dollar from the previous close of 45.48/49.
It later moved in a range of 45.45 and 45.22 before ending the day at 45.30/31. In straight six-sessions of rally, the rupee gained 60 paise or 1.31 per cent.
The dollar index, gauging of six major currencies, was down by about 0.25 per cent in European market today.
The rupee premium for the forward dollar remained weak on sustained receipts by exporters. The benchmark six-month forward dollar premium payable in July ended down at 131-133 paise from Monday’s close of 135-1/2-137-1/2 paise.
Far-forward contracts maturing in January also settled lower at 263-265 paise from 270-272 paise previously.
The Reserve Bank of India has fixed the reference rate for the dollar at Rs. 45.39 and the euro at Rs. 61.84.
The rupee continued to rule firm and closed at Rs. 73.04/06 against the pound sterling from Monday’s close of Rs. 73.25/27 and ended a bit higher against the yen to Rs. 55.22/24 per euro from Rs. 55.23/25 previously.
It, however, fell back to Rs. 61.84/86 per euro from its last close of Rs. 61.63/65.