Rupee recovers 16 paise against USD on dollar demand

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Mumbai, Feb 25 (PTI) The rupee today recovered by 16paise to end at 45.32/33 against the US currency on sale ofdollars by exporters amid marginal recovery in local equitiesdespite capital outflows and a firm greenback overseas.

Forex dealers attributed the rise in the value of rupeeto sale of dollars by exporters and some banks, expecting thedollar to fall in view of some recovery in global crude oilprices.

Global crude oil was trading below USD 98 a barrel inLondon today after breaching the USD 100-mark.

Lack of any major demand from importers too helped therupee to rebound from the overnight loss, they added.

Foreign Institutional Investors (FIIs) sold shares to thetune of USD 495.88 million on February 24 as per SEBI data butwere not able to weigh heavy on the rupee.

In narrow movements at the Interbank Foreign Exchange(Forex) market, the domestic unit opened higher at 45.40/41 adollar from yesterday''s close of 45.48/49 on initial firmnessin the equities.

It moved in a range of 45.43 and 45.27 before settling at45.32/33 per dollar.

The US dollar fell to a record low against the Swissfranc and lost ground against both the Japanese yen and theeuro yesterday in New York while the dollar index, gauge ofsix major currencies, was up by 0.15 per cent in Europeanmarket today.

The rupee premium for the forward dollar closed stable.

The benchmark six-month forward dollar premium payable inAugust finished at its overnight closing level of 145-147paise and far-forward contracts maturing in February settledat 275-277 paise from 275-1/2-277 paise previously.

The Reserve Bank of India has fixed the reference ratefor the dollar at Rs 45.37 and the euro at Rs 62.68.

The rupee also rebound to end at Rs 72.91/93 againstthe pound sterling from Thursday''s close of Rs 73.49/51 andalso rose to Rs 62.46/48 per euro from Rs 62.62/64 previously.

It too bounced back against the yen to Rs 55.37/39 per100 yen from last close of Rs 55.57/59.

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