Rupee closes five paise stronger at 44.40/41 per USD

Mumbai, Mar 20 (UNI) Rupee today closed five paise stronger at 44.40/41 per US dollar as compared to the last close of 44.45/46, said a Foreign Exchange (FOREX) dealer here.

A weaker dollar in the international market as well as booming stock markets helped the rupee gain five paise over Friday's closing rate.

Earlier the rupee opened at around five paise stronger at 44.40/42 per US dollar as compared to the last close of 44.45/46.

The rupee however lost the early morning gains trading at 44.4350/44.4450 per US dollar in the mid-morning session but closed firm at 44.40/41, the dealer added.

Healthy foreign exchange reserves around USD 144 billion and last week's rise by 770 million supported rupee at the lower level.

The crude prices in the New York Mercantile Exchange (NYMEX) softened a bit and traded below USD 63 per barrel at 62.87 per barrel, which also was good for the Indian currency.

The stock markets closing with a gain of 81 points at 10,941 points was another big reason for the rupee to close stronger.

The Reserve Bank of India (RBI) reference rate for the rupee versus US dollar was 44.44, two paise lower.

The six-month forward premia ended higher at 2.58 per cent as compared to Friday's close at 2.45 per cent.

The one-year forward premia also ended higher at 2.05 per cent as compared to the last close at 1.95 per cent.

The cross-currency closing rate for the rupee against the euro was 54.00 (54.08) which was eight paise lower; for the pound sterling it was 77.85 (77.97) which was 12 paise lower and for the Japanese yen it was 38.17 (38.20) which three paise lower.

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