Rupee opens nine months high at 44.26/28 against US dollar

Mumbai, Dec 28: The Rupee today opened four paise higher and quoted nine month firm at Rs 44.26/28 paise against per the US dollar from the it last close of 44.30/32, dealers said.

The Indian Rupee touched a fresh nine-month high on Thursday and then quickly retreated as month-end dollar demand from oil importers kicked in and traders adjusted short dollar positions.

Later, the partially convertible Rupee traded at 44.34/35 per dollar, about 0.1 per cent below the previous close of 44.30/44.32.

It hit 44.26 in early trade, its strongest since March 1, according to a leading dealer.

''On Wednesday, banks had sold dollars in the tom-spot market, in which settlement takes place for the following day. They came to buy (dollars) in early trade as they stand to gain 0.05 to 0.10 rupee,'' said a private bank.

Traders said dollar demand from oil firms was building up.

''Oil firms want to finish dollar buying for this year,'' said a trader. U.S. light crude held above USD 60 a barrel on Thursday.

India imports close to 70 per cent of its oil.

The Rupee hit its highest in more than nine months on Wednesday, after banks sold dollars to meet funding needs in a cash squeeze on the banking system, dealers added.

UNI