Rupee closes at seven month high at 44.56/57 against US Dollar

Mumbai, Nov 9: The Rupee today rose by 13 paise and closed at a new seven month high at 44.56/57 against the US Dollar compared to the previous close of 44.69/70, on sustained heavy Dollar inflows from foreign banks and some corporate sectors.

The Indian Rupee held steady just under seven-month highs against the Dollar amid an uncertain global currency outlook and traders booked profits after a sharp rally in recent weeks.

In the morning session, the partially convertible Rupee was at 44.6975/44.7050 compared to 44.6925/44.70 at the previous close.

The Dollar was trading around 117.90 Yen, but was within the sight of a six-week low against the Euro as investors waited for the US trade data later in the day.

The Rupee hit a seven-month high of 44.64 on Tuesday and has gained more than 5 per cent from a three-year low of 47.04 in July as the stock market rally to record highs has attracted foreign buyers.

The benchmark share index has gained almost 40 per cent this year, helped by foreign fund inflows of more than USD 7 billion.

During the whole day's session trade, six-month forward premia were higher at 2.00 per cent against 1.81 per cent on the previous day and one-year forward premia quoted also higher at 1.83 per cent compared with 1.72/1.75 per cent on the previous day.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.65 per US Dollar, up by three paise from it's yesterday's rate of Rs 44.68 per US Dollar, an RBI spokesperson said.

However, the performance of the Rupee against other currencies was mixed. The domestic currency closed down against the Euro at Rs 57.94/96 (57.17/19) per unit. Against the Pound Sterling, it was at Rs 85.95/97 (85.25/27) per unit and against the Japanese Yen, it was at Rs 37.73/75 (38.01/03) per 100 units, dealers said.

UNI