Rupee Up by 10 Paise on Sluggish Dollar.

The Indian rupee today snapped out of its three-day losing spree and recovered by ten paise to close at Rs 45.42/43 a dollar, following smart rally in local equities and a sluggish dollar overseas.

Fresh dollar selling by exporters and some banks further boosted the rupee.

At the Interbank Foreign Exchange (Forex) market, the domestic unit that opened near the yesterday's close at 45.53/54 a dollar, soon after dipped to the day's low of Rs 45.57 against the US currency. The rupee has depreciated by 39 paise or 0.86 per cent in the last three day trading sessions.

However, rallying stock market lifted the rupee up to Rs 45.40 a dollar before settling at 45.42/43 against the US dollar. The Indian benchmark Sensex today closed 209.80 points or 1.11 per cent higher while other Asian markets observed a mixed trend.

The dollar index, consisting of six major currencies, was down by nearly 0.6 per cent to nearly 8-week low in London today following rise in the euro on hopes for improvement in the euro zone debt.

However, the rise in the rupee was capped by sustained selling by Foreign Institutional Investors (FIIs), who pulled out USD 990.55 million from equities in nine sessions since January 5.

Meanwhile, the global crude oil was trading above USD 91 a barrel in London today.

The rupee premium for the forward dollar ended from steady to better on stray paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in June closed at 130-132 paise from 130-1/2-132 paise previously.

Far-forward contracts maturing in December edged up to 249-251 paise from 248-250 paise on Monday.

The Reserve Bank of India fixed the reference rate for the dollar at Rs 45.53 and the euro at Rs 60.62.

The rupee continued to rule weak at Rs 72.67/69 against the pound sterling from Monday's close of Rs 72.35/37 while falling back to Rs 60.92/94 per euro from the previous rate of Rs 60.41/43.

However, it recouped against the yen to Rs 55.04/06 per 100 yen from its last close of Rs 55.10/12.

Source : news.outlookindia.com