Rupee closes lower at 44.98/99 against per USD

Mumbai, Nov 20: The Rupee today was quoted lower by seven paise and closed softer at 44.98/99 against the US Dollar compared to the previous close of 44.91/93 per USD due to fresh purchases in Dollars by corporate sectors and banks.

Traders said during the afternoon trade, the Rupee declined due to genuine dollar demand by oil firms and speculation of central bank intervention which triggered the Rupee to weaken beyond the psychological mark of 45 per dollar to trade at 45.08 USD.

Markets believe the Rupee to be overvalued by eight per cent on a trade-weighted basis.

Forward Premia rose up in the morning trade, but came down later after exporters started selling forward dollars. Six-month and Twelve-month Forward Premia ended lower at 1.98 per cent(2.00 per cent) and 1.83 per cent (1.85), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.86 per US Dollar, up by 15 paise from it's Friday's rate of Rs 45.01 per US Dollar, a RBI spokesperson here said.

However, the performance of the Rupee against other currencies was mixed. The domestic currency closed down against the Euro at Rs 57.74/76 (57.35/37) per unit. Against the Pound Sterling, it was at Rs 85.30/3(85.70/72) per unit and against the Japanese Yen, it was at Rs 38.09/11 (38.04/06) per 100 units, dealers said.

UNI