Rupee closes three weeks higher against US Dollar at 44.38/39

Mumbai, Jan 9 (UNI) The Rupee closed three weeks higher today at 44.38/39 against the US dollar as compared to the previous day's close of 44.52/53, dealers said.

The domestic currency appreciated by 0.20 per cent and closed at 44.39 per USD.

Lower oil prices and expected robust inflows into equity markets supported the rupee.

Also, hawkish comments from Finance Minister P Chidambaram on the state of the economy helped the rupee to appreciate against the dollar during the day.

Volatile premia fell over concerns of tight liquidity as it did not induce traders to engage into sell-buy swap contracts.

Six-month and 12-month premia ended at 3.49 per cent (3.70 per cent) and 2.91 per cent (3.01 per cent) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.47 per US dollar, down by five paise from its yesterday's rate of Rs 44.42 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 57.78/80 (57.83/85) per unit, it was Rs 86.16/18 (85.93/95) per unit against Pound Sterling, and at Rs 37.20/22 (37.50/52) per 100 units against the Japanese Yen, dealers said.

UNI