Rupee closes lower by 17 p at 44.69/70/USD

Mumbai, Dec 6: The Rupee today closed lower by 17 paise at 44.69/70 per US dollar as compared to the previous close of 44.52/53 on heavy purchase of dollars by Foreign and domestic banks.

The Rupee rose in the early morning trade to the levels of 44.50/44.51 against the dollar. However, heavy dollar demand from oil importers and fear of central bank intervention trimmed the Rupee's gains as it failed to strengthen beyond the levels of 44.50/USD. Rupee is expected to edge up against the dollar by the end of the day.

Forward premia was quite volatile during the day with both importers and exporters entering the markets. Six-month and Twelve-month premia ended at 2.10 per cent (2.14 per cent) and 2.00 per cent (2.05 per cent) respectively.) The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.51 per US dollar, up by six paise from yesterday's rate of Rs 44.56 per US dollar, a RBI spokesperson said here.

However, the performance of the domestic unit against other currencies was mixed. The Rupee closed down against Euro at Rs 59.39/41 (59.31/33) per unit. Against the Pound Sterling, it was at Rs 87.85/87 (87.96/98) per unit and against the Japanese Yen, it was at Rs 38.90/92 (38.84/86) per 100 units, dealers added.

UNI