Rupee closes lower at 44.72/73 per USD

Mumbai, Dec 8: The Rupee today closed lower at 44.72/73 against the US dollar as compared to the previous close of 44.65/66 on sustained selling pressure of dollars by Foreign and domestic banks.

The Rupee edged up against the greenback despite the rumoured influence of the central bank on the market. Heavy volatility of the previous session and the rumours weighed on sentiment forcing traders on an extended short covering spree early in the day. Rupee was quoted as high as 44.80 before staging a smart recovery to 44.61. Traders said presence of state-run bank bids eased later in the day and some Asian units rallied aiding the Rupee. INR closed at 44.65 within the 44.60-70 range for the ninth time in 11 sessions.

Forward premia rose during the day as importers were seen booking covering dollars in the markets. Six-month and Twelve-month premia ended at 2.18 per cent (2.07 per cent) and 2.05 (2.00 per cent) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.69 per US dollar, down by three paise from its yesterday's rate of Rs 44.66 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 59.36/38 (59.34/36) per unit. Against the Pound Sterling, it was at Rs 87.57/59 (87.81/83) per unit and against the Japanese Yen, it was at Rs 38.64/66 (38.83/85) per 100 units, dealers said.

UNI