Rupee touches seven month high at 44.72/73 against per US dollar

Mumbai, Nov 7 (UNI) The rupee today touched a seven month high at 44.72/73 against the US dollar compared to the previous close of 44.865-/8750, due to heavy corporate selling pressure in the dollar, forex dealers said.

The Rupee rose to 44.72/73 against the US dollar, its highest in seven months, gaining from a weaker dollar. The rupee continued to rise due to strong FII flows as well as selling of long dollars position.

Earlier, the central bank was seen buying dollars at the levels of 44.82/44.83 to inject rupee liquidity and to maintain India's export competitiveness.

Markets also believe that RBI intervention was due to the increasing over-valuation of the rupee. According to JP Morgan index, the rupee looks overvalued by 9 per cent, compared to last month's 7 per cent.

During the whole day's session trade, six-month forward premia were lower at 1.75/82 per cent against 1.83/85 per cent on previous day and one-year forward premia quoted lower at 1.67/1.71 compared to the previous 1.73/1.75 per cent.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.83 per US Dollar, up by three paise from its yesterday's rate of Rs 44.86 per US Dollar, a RBI spokesperson said.

However, the performance of the rupee against other currencies was mixed. The domestic currency closed down against the Euro at Rs 57.04/06 (57.02/04) per unit. Against the Pound Sterling it was at Rs 85.16/18 (85.12/14) per unit and against the Japanese Yen it was at Rs 37.91/93 (37.92/94) per 100 units, dealers added.

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