Rupee closes high at 44.69/70 against US dollar

Mumbai, Nov 8 (UNI) The rupee today slightly rose by three paise and closed at 44.6900/7000 against the US dollar compared to the previous close of 44.7200/7300, on sustained good demand from public sector banks and some corporate sector.

During the morning trade, the Rupee rose to 44.66 against US dollar which was highest since April, and also around 0.15 per cent higher from Tuesday's previous close of 44.74 per US dollar, forex dealers said.

The markets observed selling of dollars overseas by foreign banks. But the gains were capped due to fresh dollar demand by importers and corporates.

By the end of the day, market players expect the rupee to trade between the levels of 44.60 to 44.70.

There was not much movement in the Forwards markets during the morning trade. This was due to lack of active participation by importers and exporters During the whole day's session trade, six-month forward premia were higher at 1.81 per cent against 1.75/82 per cent on previous day and one-year forward premia quoted also higher at 1.72/1.75 per cent compared to the previous 1.67/1.71 per cent.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.68 per US Dollar, up by 15 paise from it's yesterday's rate of Rs 44.83 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 57.17/19 (57.04/06) per unit. Against the Pound Sterling, it was at Rs 85.25/27 (85.16/18) per unit and against the Japanese Yen, it was at Rs 38.01/02 (37.91/93) per 100 units, dealers added.

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