Rupee closes higher at 44.65 per US dollar

Mumbai, Dec 7: The Rupee today closed higher at 44.65 per US dollar as compared to the previous close of 44.70/72 on small purchase of dollars by Foreign and domestic banks.

The Rupee pulled up after hitting a 2-week low of 44.77/USD on the back of suspected central bank intervention. However, later during the day, the Rupee regained its losses due to robust capital inflows and strengthening of Asian currencies.

Markets would be keeping a close watch on the activities of state-run banks in the near future.

Forward premia rose during the day as importers were seen booking covering dollars in the markets. Six-month and Twelve-month premia ended at 2.07 per cent(2.10 pr cent) and 2.00 ( 2.00 pr cent) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.66 per US dollar, down by 15 paise from its yesterday's rate of Rs 44.51 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 59.34/36 (59.39/41) per unit. Against the Pound Sterling, it was at Rs 87.81/83 (87.85/87) per unit and against the Japanese Yen, it was at Rs 38.83/85 (38.90/92) per 100 units, dealers said.

UNI