Rupee closes sharply high at 44.93/94 against the Dollar

Mumbai, Nov 16 (UNI) The Rupee today was quoted smartly higher by 40 paise and closed firm at 44.93/94 against the US Dollar compared to the previous close of 45.34/35 per US Dollar due to heavy selling pressure of Dollars by foreign banks.

The Rupee edged up by 0.8 per cent and closed at 44.93 against US Dollar. Strong capital flows and Dollar selling by exporters boosted the Rupee to appreciate against the Dollar. In the days to come, markets expect the Rupee to appreciate further although the activity of State-run banks would be watched very carefully.

Forward Premia rose during the day as markets observed importers buying forward Dollars in the market. Six-month and twelve-month Forward Premia ended higher at 1.95 per cent (1.82 per cent) and 1.80 per cent (1.74 per cent) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 45.17 per US Dollar, up by 17 paise from it's yesterday's rate of Rs 45.34 per US Dollar, a RBI spokesperson said here.

However, the performance of the Rupee against other currencies was mixed. The domestic currency closed down against the Euro at Rs 57.50/52 (57.96/98) per unit. Against the Pound Sterling, it was at Rs 85.78/80 (85.50/52) per unit and against the Japanese Yen, it was at Rs 38.05/07 (38.36/38) per 100 units, dealers said.

UNI AR KU SKB1900