Rupee goes volatile before closing flat at 45.18/20/USD

Mumbai, Apr 13 (UNI) Rupee was voatile today plunging to 45.41 per US dollar before bouncing back and closing flat at 45.18/20. Rupee closed at 45.18/19 yesterday.

The US dollar was stronger today against other international currencies as the US data released yesterday showed narrowing of trade deficit gap.

The bounced back on the back of exporters selling dollars at the higher rate, however, the foreign institutional investors were buying dollars as they engagged in selling of shares in the stock markets leading to intra-day dip in the rupee to 45.41 per dollar.

Thus Rs 421.70 crore of foreign fund outflow in the Indian equity market, reported by market regulator SEBI for Monday, was a major factor that put rupee under pressure.

Earlier the rupee opened weaker at 45.22/24 per US dollar against the last close of 44.18/19, said a foreign exchange (forex) dealer here.

Downward pressure on rupee continued even today after its sharp dip yesterday, and the domestic currency traded seven paise weaker at 45.2550/2650 from the previous close in the mid-morning session.

Crude oil price in the New York Mercantile Exchange (NYMEX) came down slightly and hovered around USD 68.25 per barrel which should comfort the rupee.

The Reserve Bank of India (RBI) reference rate for the rupee versus US dollar was 45.30, which was 37 paise down from the previous close.

The six-month forward premia ended higher at 1.28 per cent, as compared to previous close at 1.18 per cent.

The one-year forward premia also ended higher at 1.34 per cent, as compared to the last close at 1.20 per cent.

The cross-currency closing rate for the rupee against the euro was 54.60 (54.88), which was 28 paise lower, for pound sterling it was 79.12(79.35), which was 23 paise down and for the Japanese yen it was 38.05 (38.25), which was 20 paise lower from the previous close.

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