Rupee closes at five week low against Dollar at 44.41/43

Mumbai, Jan 12 (UNI) The Rupee closed at a five-week low today at 44.41/43 against the US dollar as compared to the previous day's close of 44.58/60, dealers said.

The Indian Rupee extended its losses on Friday as the dollar strengthened against major currencies and on concerns about equity outflows, traders said.

Later, the partially convertible Rupee was at 44.610/620 per dollar, falling for the third straight session. It ended Thursday at 44.58/59.

''The strong dollar is bearing down on the Rupee, and the direction of capital flows should determine where the Rupee is headed today,'' said a foreign bank official.

''I expect the Rupee to trade in a 44.55/70 range today,'' he added.

After falling in the past few sessions, premia finally rose up as importers were seen covering short positions. Six-month and Twelve-month premia ended at 3.21 per cent(3.31 per cent) and 2.80 per cent (2.85 per cent) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.61 per US dollar, down by five paise from its yesterday's rate of Rs 44.56 per US dollar, an RBI spokesperson said.

However, the performance of the domestic unit against other currencies was mixed. The Rupee was down against the Euro at Rs 57.30/32 (57.78/80) per unit, it was Rs 86.55/57 (86.37/39) per unit against Pound Sterling, and at Rs 36.86/88 (37.02/04) per 100 units against the Japanese Yen, dealers said.

UNI