Rupee closes two weeks low at 45.19/20 against the Dollar

Mumbai, Nov 14 (UNI) The rupee today closed two weeks low of 45.19/20 against the US Dollar compared to the previous close of 44.99, on sustained heavy demand in dollar by banks and some corporate sectors.

There were rumours that Central Bank intervened the market and drove the rupee down to the level of 45 against the dollar. The intervention was done to inject rupee liquidity as well as to protect the export competitiveness of the country.

Forward Premia edged up during the day. Markets observed that importers were covering their forwards position while exporters were covering underlying receivables.

During the whole day's session trade, six-month forward premia was higher at 1.85/1.87 per cent against 1.75/1.77 per cent on the previous day and one-year forward premia quoted also weaker at 1.75/1.77 per cent compared to 1.65/1.67 per cent on the same period.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.90 per US Dollar, down by 45 paise from it's Friday's rate of Rs 44.45 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 57.92/94 (57.57/59) per unit. Against the Pound Sterling, it was at Rs 85.72/74 (85.60/62) per unit and against the Japanese Yen, it was at Rs 38.39/40 (38.14/16) per 100 units, dealers said.

UNI AR PM SKB1901