Rupee closes higher against US Dollar at 44.28/29

Mumbai, Jan 4: The Rupee closed higher today at 44.28/29 against the US dollar compared to 44.35/36, the previous day's close, dealers said.

The Indian Rupee ended higher on Thursday, helped by exporters selling dollars and expectations that call money rates may rise and make dollars more expensive.

The partially convertible Rupee ended at 44.27/44.28, 0.5 per cent higher than an intra-day low of 44.49 and stronger than Wednesday's close of 44.3500/44.3600. The currency had weakened on the first two trading days of the year.

There have been some good dollar sales by a big software firm around the 44.40 levels. With the cash squeeze expected to creep in early next week, the market is a bit hesitant on going long on dollars.

A cash crunch in the money market last week prompted banks to sell dollars to raise Rupees.

Forward premia fell as massive gains in the past few sessions gave way to profit taking. Six-month and Twelve-month premia ended at 3.66 per cent (3.60 per cent) and 3.01 (2.91 per cent) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.42 per US dollar, down by nine paise from its yesterday's rate of Rs 44.33 per US Dollar, 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 58.00/02 (58.62/64) per unit, it was Rs 86.07/09 (86.87/89) per unit against Pound Sterling, and was at Rs 37.11/13 (37.10/12) per 100 units against the Japanese Yen, brokers said.

UNI