Rupee closes weaker by 14 paise at 44.70/72 against US Dollar

Mumbai, Nov 10 (UNI) The Rupee today tumbled by 14 paise and closed low at 44.70/72 against the US Dollar compared to the previous close of 44.56/58, on lack of fresh buying support from some corporate sectors.

Traders said that Reserve Bank of India's(RBI) intervention to support the rupee against the US dollar, and at the same time, the forex inflows coming into the stocks exchanges, has to an extend prevented the rupee from becoming weak further.

The Rupee continued unhindered even as traders worried about overbought territories and possibility of state-run bank support for the dollar. The rupee spiked to 44.60 around the noon after a cautious start and rose further in a fresh burst of dollar liquidation in late afternoon trading before it opened weak at Rs 44.44/45 per US dollar.

Forward premia were higher despite the strong spot rupee with traders noting some importer demand amidst sell/buy swaps. Premia were up by 4-5 paise at the far months.

During the whole day's session trade, six-month forward premia was lower at 1.78 per cent against 2.00 per cent on the previous day and one-year forward premia quoted also weaker at 1.70 per cent compared to 1.83 per cent on the previous day.

The RBI today fixed the reference rate at Rs 44.45 per US Dollar, up by 20 paise from it's yesterday's rate of Rs 44.65 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 57.53/55 (57.94/96) per unit. Against the Pound Sterling, it was at Rs 85.63/65 (85.95/97) per unit and against the Japanese Yen, it was at Rs 38.05/07 (37.73/75) per 100 units, dealers said.

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