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Rupee falls by 13 paise to 46.85/86 on firm dollar.


Date: 22-12-2009
Subject: Rupee falls by 13 paise to 46.85/86 on firm dollar

MUMBAI: In a range-bound trading today, the Indian rupee lost 13 paise to close at 46.85/86 against the US dollar on fresh outflows and firm American currency that held near its three-month highs.

Forex dealers said, a strong dollar in the global market which neared its highest points in more than three months against the euro and fresh pull-out from equities by foreign funds impacted negatively on the rupee.

The dollar has been on an uptick as currency players anticipated more short-covering in the greenback in a holiday shortened week.

The benchmark Sensex that fell by 119 points to six-week-low of 16,601.20 points also dragged down the Indian currency, they added.

At the Interbank Foreign Exchange (Forex) market, moved in a narrow range of 46.76 and 46.86 on alternate bouts of buying and selling. It ended the day at 46.85/86 a dollar.

Meanwhile, global crude oil prices were trading near USD 75 a barrel in London today.

The Reserve Bank Of India (RBI) fixed the reference rate for the US dollar at Rs 46.80 per dollar and for the single European currency at Rs 67.12 per euro.

Rupee premiums for the forward dollar ended slightly better on stray paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in May edged up to 61-63 paise from 59-61 paise on last Friday and far-forward maturing in November also ended slightly higher at 128-130 paise from 127-128 paise previously.

In cross-currency trade, the domestic currency firmed up against the Pound sterling and the Euro while reacted slightly downwards against the Japanese yen.

The rupee rebounded against the pound to end at Rs 75.55/57 per pound from last Friday's close of Rs 75.67/69 while it inched up further against the euro to Rs 67.18/20 per euro from Rs 67.20/22 previously.

It, however, softened against the Japanese yen to Rs 51.76/78 per 100 yen from its previous close of Rs 51.73/75.

Source : The Economic Times


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