Rupee smiles on Yen's slide, gains by 6 paise at 44.87 USD

Mumbai, May 8 (UNI) The sharp fall in U S Dollar against Japanese Yen, boosted market sentiment in the Intebank Foreign Exchange (Forex) market in India, with Rupee registering a smart gain of 6 paise to close at 44.87/88 per U S dollar today, despite loosing early gains.

Rupee opened firm with a gap of ten Paise at Rs 44.83/84 from the previous close of 44.93/94 per U S Dollar, fell to the day's low of Rs 44.88/89, before finishing at 4.87/88 per dollar, registering a net gain of 6 paise over the Friday's close.

Forex dealers attributed the sharp rise in the Rupee to the nearly one per cent slide in dollar against the Japanse yen.

According to them, the fall in dollar against yen expected to boost sentiment in forex market in the days ahead too.

Reserve Bank of India (RBI) today maintained the reference rate at 44.88 per US dollar at the Friday's level.

Recovery in Rupee also aided the sentiments in the forward section, where the the six-month forward premia ended at 0.98 per cent from the previous close of 1.19 per cent.

The one-year forward premia also ended lower at 1.05 per cent from the previous close of 1.24 per cent.

The cross-currency closing rate for the rupee against the euro was 57.30 (56.92), which was about 62 paise up. for pound sterling it was 83.70 (83.05), 65 paise up and for the Japanese yen it was 40.40 (39.35) Rs 1.15 paise up from the previous close.

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