In contrast to equities, the Indian rupee today snapped three-session of losses moving up by 14 paise against the US dollar on waning fears of fresh capital outflows amid a weak American currency overseas.
Forex dealers said the dollar selling by exporters and weakness in US currency against its rivals aided the rupee to recover to settle the day at 46.53/54 a dollar from its previous close of 46.67/68.
Some banks too were seen covering dollars after a reported statement by RBI governor D Subbarao that measures to control capital inflows could not be ruled out in case of a surge in foreign funds.
The positive sentiments helped the Indian rupee to hold on to today's gains even as the Bombay Stock Exchange benchmark Sensex ended down by over 100 points to 17,125.22.
At the Interbank Foreign Exchange (Forex) market, the domestic unit opened sharply lower at 46.80/81 a dollar and touched the day's low of 46.95 a dollar.
The rupee had risen close to its 46 level against dollar on December 3 following heavy portfolio investments in the current calendar year so far into the country.
Meanwhile, global crude oil rose towards USD 74 a barrel in London today.
The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.77 and for the euro at Rs 68.77. Rupee premiums on the forward dollar ended slightly better on fresh paying pressure from banks and corporates.
The benchmark six-month forward dollar premium payable in May ended up at 53-1/2-55-1/2 paise from 51-53 paise on Tuesday and far-forward maturing in November also finished higher at 108-110 paise from 107-109 paise previously.
In cross-currency trade, the domestic currency rose against the pound and the Euro while declined further against the Japanese yen.
The rupee improved further against the pound to end at Rs 75.96/98 per pound from Tuesday's close of Rs 76.12/14 and also firmed up against the euro to Rs 68.65/67 per euro from Rs 69.07/09 previously.
It, however, declined further against the yen to Rs 52.90/92 per 100 yen from its last close of Rs 52.69/71.
Source : outlookindia