Rupee ends higher at 46.54 against US dollar.

The Indian rupee ended marginally higher by two paise to 46.54/55 against the US dollar, tracking gains in the domestic share market.

The Indian rupee resumed higher at 46.41/42 per dollar in the Interbank Foreign Exchange (Forex) market and hovered in a range of 46.29 and 46.57 before finishing at 46.54/55 per dollar. It had closed yesterday at 46.56/57.

The rupee hit its highest level in four weeks of 46.29 against the American currency during the afternoon on the back of a return in risk appetite globally. It was boosted by a rise in other regional peers as well.

The Indian benchmark Sensex rose above 17,500 for the first time since early May during the day before ending 50 points, or 0.29 per cent, higher from its previous close.

Dealers in forex said mild selling of dollars by banks on hopes of further capital inflows into the equity market helped the rupee's rise.

Meanwhile, in New York, the dollar declined and the euro touched its highest level since early this month as investor confidence in the global recovery continued to improve on Tuesday, supporting stocks and reducing the appeal of the greenback.

In London, the euro briefly hit a 2-week high on Wednesday, continuing its correction from a four-year low versus the dollar on improved tolerance for risk, but lacked the momentum to tackle nearby resistance levels.

Global crude oil was trading below $77 a barrel in London on Wednesday.

The rupee premium for the forward dollar improved further due to sustained paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in November finished slightly higher at 67-69 paise from 66-68  paise on Tuesday and far-forward maturing in May also closed up at 122-124 paise from 120-122 paise previously.

The Reserve Bank of India fixed the reference rate for the dollar at Rs 46.35 and for the euro at Rs 57.16.

In cross currency trade, the domestic currency declined further against the pound and the euro, but recovered against the Japanese yen.

The rupee fell further against the pound to end at Rs 68.87/89 per pound from Tuesday's close of 68.58/60 and also moved down against the euro to Rs 57.16/18 per euro from Rs 57.11/13 previously.

It, however, recouped against the yen to Rs 50.86/88 per 100 yen from its last close of RS 51.00/02.

Source : ndtv.com