Rupee closes higher by 12 paise at 44.86/87 per USD

Mumbai, Nov 21: The Rupee was today quoted higher by 12 paise and closed firm at 44.86/87 against the US Dollar as compared to the previous close of 44.98/99 per USD on sustained heavy selling pressure in Dollars by foreign and nationalised banks, dealers said.

The Rupee was boosted with strong capital inflows as well as traders selling dollars with expectations that Infosys Technologies Ltd's ADR proceeds worth USD 1.6 billion would hit the market during the week.

Markets believe that the Central bank might intervene if the Rupee rises sharply, thereby prompting traders to cover short dollar positions.

Forward Premia fell after markets observed that exporters were booking their forwards contracts during the day. Six-month and 12-month Forward Premia ended at 1.88 per cent (1.98 per cent) and 1.77 per cent (1.83 per cent) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.99 per USD, down by 13 paise from yesterday's rate of Rs 44.86 per USD, a RBI spokesperson said here.

However, the performance of the Rupee against other currencies was mixed. The domestic currency closed down against Euro at Rs 57.46/48 (57.74/76) per unit. Against the Pound Sterling, it was at Rs 85.11/13 (85.30/32) per unit and against the Japanese Yen, it was at Rs 37.98/38.00 (38.09/11) per 100 units, dealers said.

UNI