Rupee closes low at Rs 44.8950/9050 per USD

Mumbai, Nov 2: The rupee today eased modestly by two paise over the previous close to settle at Rs 44.8950/9050 per US Dollar, as markets believed that the yen's weakness against the dollar drifted down the rupee in the early trade, dealers said.

With the External Commercial Borrowing (ECB) monetary policy decision due later during the day and the US jobs report due on Friday, the rupee might trade at around the level of 44.92/93 against the dollar during the course of the day. The over-valuation of the rupee might tempt the RBI to intervene to control the flow of funds. According to the JP Morgan index, the rupee is overvalued by 7 per cent.

During the mid-day, the yields on the six month and twelve forward premia were down at 1.88 per cent and 1.78 pc, from the previous close of 2.10 pc and 1.85 pc respectively.

Earlier, the domestic currency opened at Rs 44.91/93 per USD and in the afternoon traded at Rs 44.9525 per USD.

Reserve Bank of India (RBI) today maitanined the reference rate at Rs 44.93 per USD as compared to the previous rate of Rs 44.93 per USD.

However, the performance of the rupee against other currencies was mixed. The domestic currency closed down against Euro at Rs 57.30/32 (57.24), against Pound Sterling rupee was flat at Rs 85.63 (85.63) and against Yen it was also steady at Rs 38.38 (38.38) per 100 units.

UNI