Rupee Falls by 9 paise to 44.44/45 against US Dollar.

MUMBAI: The Indian rupee fell by 9 paise to 44.44/45 against the US dollar today amid weakness in domestic equity markets and month-end dollar demand from oil refiners.

The domestic unit opened on a weak note at 44.45/46 per dollar against the previous close of 44.35/36 on the Interbank Foreign Exchange. Later, it was trapped in a narrow range between 44.40 and 44.51 before finishing the day at 44.44/45 against the dollar.

Weakness in local equities mainly weighed on the rupee's fortunes, a forex dealer said. The Indian benchmark Sensex today closed down by about 82 points, or 0.40 per cent.

Month-end dollar demand from importers, mainly oil refiners, to meet their commitments also affected the rupee sentiment, he added.

However, the rupee's fall was cushioned by the record capital inflows in the current month. Foreign Institutional Investors (FIIs) have infused a massive USD 24.74 billion in the domestic market in the current fiscal till October 25.

Meanwhile, the government today ruled out putting controls on FII inflows into equity markets as of now, though it said the apex bank may intervene to check rupee appreciation if needed.

Global crude oil was trading above USD 82 a barrel in London today afternoon.

The rupee premium for the forward dollar closed higher on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in March ended higher at 129-1/2-131-1/2 paise, as against 124-126 paise on Monday, while the premium on far-forward contracts maturing in September also shot up to 245-1/2-247-1/2 paise from 233-1/2-235-1/2 paise previously.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.43 and the euro at Rs 62.07. In cross-currency trade, the domestic unit fell back against the pound sterling, but recovered against the euro and the Japanese yen.

The rupee fell sharply to Rs 70.54/56 against the pound sterling from Monday's close of Rs 69.77/79, but rebounded to Rs 61.89/91 against the euro from Rs 62.22/24 previously. It also recovered against the yen, appreciating to Rs 54.74/76 per 100 yen from its last close of Rs 54.99/55.01.

Source : economictimes.indiatimes.com