Rupee closes flat against USD at 44.23/24

Mumbai, Jan 2: The Rupee ended unchanged at 44.23/24 against the US dollar here today, dealers said.

Robust capital flows into local equity markets and cash shortage in the money markets helped Rupee hit an intra-day high of 44.17 USD.

However, Rupee's gains were capped on the back of month-end dollar demand. Rupee is expected to appear firm against the dollar, although activities of state-run banks would be closely monitored.

Forward premia fell as massive gains in the past few sessions gave way to profit taking. Six-month and Twelve-month premia ended at 3.15 per cent (3.60 per cent) and 2.69 (2.95 per cent) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.20 per US dollar, up by three paise from Rs 44.23 per US dollar, the rate on December 29, 2006, a RBI spokesperson said here.

However, the performance of the domestic unit against other currencies was mixed. The Rupee was down against the Euro at Rs 58.73/75 (58.26/28) per unit, it was Rs 87.17/19 (86.80/82) per unit against Pound Sterling, and was at Rs 37.20/22 (37.23/25) per 100 units against the Japanese Yen, brokers said.

UNI