Rupee opens higher at 44.98 per USD

Mumbai, Apr 28: Rupee opened higher at 44.98 per US dollar as compared to the last close of 45.02/03, a foreign exchange market dealer informed.

The rupee was firmer in choppy trade on Friday following indications that the U.S. Federal Reserve could pause its rate tightening campaign.

Chairman Ben Bernanke told Congress that the economy was poised to be slow, and said the Fed's policy panel may opt for a hiatus even if inflation risks grew.

The comments led financial markets to cut bets on a June rate rise, while still wagering on one in May.

The rupee was at 45.01/02 per dollar, compared with Thursday's close of 45.02/03 per dollar.

The Indian currency recovered after weakening briefly in early trade, tracking a fall in the key stock market index after the regulator cracked down on some brokerages for allegedly manipulating initial public offerings.

''There is some fear that foreign fund inflows may slow down due to the regulator's move,'' said a dealer with a foreign bank.

The partially convertible rupee , which is overvalued by about 5 per cent on a trade-weighted basis according to JP Morgan, hit its lowest in nearly four months earlier in April, at 45.40 to a dollar.

''We could also see some month-end demand for dollars from oil companies,'' said a dealer at an Indian private sector bank, who expected the rupee to touch 44.80 by next week.

UNI