The Indian rupee today ended stronger by 13 paisa at 46.51/52 against the US dollar on surprisingly high GDP growth and a good showing by the markets after two session of losses.
The greenback weakened on London Exchange after UAE's assurance that it would stand behind the lenders in Dubai, providing some respite to investors worried about debt crisis.
Indian benchmark Sensex bounced back by 294 points or 1.77 per cent, ending a two-day sharp slide while Asian markets registered strong gains.
The local unit had fallen by 44 paisa or nearly 1.0 per cent in the last two days.
The domestic currency moved in the range of 46.34 and 46.55 during the day after resuming higher at 46.42/44 a dollar against its last close of 46.64/65 a dollar.
Dealers at the Interbank Foreign Exchange (forex) market said the rupee trimmed its initial gains as oil refiners bought dollar in the late afternoon trade exerting pressure on the Indian currency.
The rupee, however, drew support from a sharp rally in local stocks and weakness in dollar against a basket of currencies and a higher-than expected GDP of 7.9 per cent.
Generally, oil companies buy dollars for their monthly import payments at the month-end.
The Reserve Bank of India, however, fixed the reference rate for the US dollar at Rs 46.48 and for the euro at Rs 69.99.
Rupee premiums on the forward dollar declined on sustained receiving by exporters.
The benchmark six-month forward dollar premium payable in May moved down by up to 54 paise from last weekend's closing level of 54-1/2-55-1/2 paise and far-forwards maturing in November also finished lower at 106-1/2-108-1/2 paise as compared to 111-112 paise previously.
In cross-currency trade, the domestic currency dropped against the pound sterling and euro and eased further against the the Japanese Yen.
The rupee reacted downwards against the pound to end at Rs 76.60/62 per pound from previous closing level of Rs 76.34/36 per pound and declined against the Euro to finish at Rs 69.91/93 per euro as against Rs 69.49/51 per euro previously.
The rupee also eased further against the Japanese yen to end at Rs 53.92/94 per 100 yen as compared to Rs 53.91/93 per 100 yen previously.
Source : outlookindia.com