Rupee closes higher at 49.50 per dollar

Mumbai, Nov 26 (UNI) The Rupee today strengthened by nearly 45 paise to 49.50 against the US dollar on sustained selling pressure on dollars by foreign banks and a rally in the local share market.

The partially convertible rupee opened firm at 49.80 per dollar and later fluctuated in a wide range between 50.05 and 49.25 in intra day trade.

It had fallen to a record low of 50.60 last week. The softening of the non-deliverable forward rates were also positive.

Dealers said a rise in the local share market also boosted sentiment. Indian shares climbed 3.8 per cent on Wednesday in a late rally as rate cut expectations gathered momentum after China lowered its interest rates.

Dealers said they had expected some month-end dollar demand from oil refiners to pressure the rupee lower.

The Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 49.85 per unit, down by 12 paise, against its yesterday's rate of Rs 49.97 per dollar, while the reference rate for Euro rose by 47 paise to Rs 64.68 per unit from its last close of Rs 64.21 per unit, an RBI release said.

Meanwhile, the six-month and annualised forward dollar premiums were firm by 3.32 (3.10) per cent and 2.18 (2.10) per cent respectively.

The Rupee closed upward at 63.88/90 (63.08/10) per unit against the Euro. It closed at 75.62/74 (75.18/20) per unit against the Pound Sterling and at 51.72/74 (51.74/76) per hundred units aginst the Japanese Yen, brokers added.

UNI AR OBB NP1846