Rupee inches up at 44.59/56 against USD on strong stock rally

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Mumbai, Sep 8 (UNI) The Rupee today recovered to close firm at 44.59/60 against the dollar, strengthening by about five paise from its previous close of 44.64/65 per dollar, following a sharp surge in the equity market.

The Indian Currency shed most of the early gains trade but ended stronger on hefty dollar demand from oil firms and some foreign banks, dealers said.

It opened firm at 44.35/36 and hit a day's high of 44.13 in the early trade but later touched a low of 44.65 on fresh demand in late trade, marking a very volatile session, dealers asserted.

The strong rally in the local stock market on expectations of some reversal in capital flows helped the rupee rise strongly in early trade but sustained demand of dollars later on weighed on the local unit, a senior dealer with a leading private sector bank said.

Meanwhile, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 44.26 per unit, down by 11 paise, against the previous day's rate of Rs 44.37 per dollar.

The six-month and annualised forward dollar premium was quoted higher at 2.92 (2.88) per cent and 2.63 (2.58) per cent respectively.

The Rupee ended the day stronger at 63.37 (63.66) per unit against the Euro. It closed at 78.50 (78.62) per unit against the Pound Sterling. Rupee ended at 41.02 (41.99) per hundred units against the Japanese Yen.

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