Rupee gains four paise to 45.04/05/USD as dollar weakens

Mumbai, May 12: Rupee closed four paise stronger at 45.04/05 per US dollar, as compared to the last close of 45.08/09, said a dealer in the forex market.

The US dollar depreciated drastically in the global markets leading to rise in the rupee, added the dealer.

Euro and Yen appreciated too, as dollar weakened a day after the 25 basis point hike in US interest rates.

Earlier in the morning, the Indian unit opened stronger by eight paise at 45.00/02 per US Dollar as compared to the last close of 45.08/09. The rupee dipped sharply to 45.07/08 per USD in the mid-morning session before making a comeback during the later half of the day.

Reserve Bank of India (RBI) fixed the reference rate at 45.05 per US dollar, which was two paise higher as compared to yesterday's level.

The six-month forward premia ended lower at 1.08 per cent from the previous close of 1.22 per cent.

The one-year forward premia too, ended lower at 1.13 per cent from the previous close of 1.21 per cent.

The cross-currency closing rate for rupee against euro was 58.05 (57.30), which was 75 paise up, for pound sterling it was 85.30 (83.95), one rupee 35 paise up and for the Japanese yen it was 41.04 (40.50), 54 paise up from the previous close.

UNI