Rupee closes three paise weaker at 44.93 USD

Mumbai, May 5 (UNI) Rupee ended three paise lower against the US dollar at Rs 44.94/94 from the previous close of Rs 44.90 after registering a partial recovery from the day's low of Rs 44.97/98 amidst volatile trading today.

Rupee opened on a relatively firm note at Rs 44.84/85 from the previous close of Rs 44.90, but fell shaply by about 13 paise from the day's open before staging a partial recovery to close at 44/93.94.

Forex dealers attributed the sudden volatility in the market to the short covering by the market participants. A mixed and quiet trend in the stock market also impacted the sentiment in the forex market, the dealers said.

Softening of the crude oil prices in the international market also one of the reason for the short covering, dealers said.

Reserve Bank of India (RBI) reference rate for rupee versus US dollar was 44.88, nine paise up from the previous close.

The six-month forward premia ended at 1.19 per cent, as compared to previous close of 1.34 per cent.

The one-year forward premia also ended at at 1.24 per cent, as compared to the last close at 1.34 per cent.

The cross-currency closing rate for the rupee against the euro was 56.92 (56.56), which was about 46 paise up. for pound sterling it was 83.05 (82.69), 37 paise up and for the Japanese yen it was 39.35 (39.36), 1 paise up from the previous close.

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