Rupee rises by 5 paise on fresh dollar selling

The rupee rose by 5 paise today to close at 44.69/70 against the U.S. currency on fresh selling of dollars by banks on weak global cues, amid a firm trend in equity market.

“USD/INR had a very dull session with only a 9 paise movement in the entire day. The Equity markets traded positive with major indices closing in green,” Alpari (Forex) India CEO Pramit Brahmbhatt said.

Looking forward, rupee would take cues from the dollar index and inflows from the much awaited Power Finance FPO and 44.50—45.00 would be an ideal range this week,” he added.

At the Interbank Foreign Exchange, the rupee resumed higher at 44.65/66 per dollar as against the previous closing level of 44.74/75 per dollar and edged up further to 44.64 per dollar before ending at 44.69/70.

It moved in a range between 44.64 and 44.72 per dollar during the day.

Fresh selling of dollars by banks in view of the weak dollar in overseas markets mainly boosted the rupee value against the dollar, a forex dealer said.

The dollar edged lower against the euro in the New York market yesterday after the shared currency touched a three—week low following reports that Greece may get further restructuring aid.

Meanwhile on the international front GBP saw some bullishness as it touched 1.6500 levels and euro weakened, after the Bank of England Quarterly inflation report stated outlook for growth has deteriorated in the past three months and inflation seems to be a worry for the economy.

Meanwhile, U.S. crude future was trading above USD 102 a barrel in London today.

The rupee premium for the forward dollar closed higher on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in October ended higher at 145-147-1/2 paise from Tuesday’s close of 145-146 paise.

Far—forward contracts maturing in April also finished up at 294—1/2—296—1/2 paise from 290-292 paise yesterday.

The RBI has fixed the reference rate for the dollar at Rs. 44.69 and the euro at Rs. 64.39.

The rupee reacted downwards against the pound sterling to end at Rs. 73.75/77 from overnight close of Rs. 73.12/14, while improved further against the euro to close at Rs. 64.15/17 from Rs. 64.20/22 in the previous session.

It, however, recovered against the Japanese yen to Rs. 55.17/19 per 100 yen from last close of Rs 55.52/54.