Rupee closes high against Dollar at 44.27/28

Mumbai, Jan 15 (UNI) The Rupee closed high today at 44.27/28 against the US dollar as compared to the previous day's close of 44.41/42, dealers said.

The Indian Rupee rose to its highest in more than a week today, boosted by a record high in the Stock market that was expected to encourage foreign investors.

The partially convertible rupee gained for a second day, ending at 44.27/28 per dollar, its highest since January five and about 0.3 per cent firmer than Friday's close of 44.41/42.

The main share index, which hit its second record high today, has risen 2.5 per cent this month.

Foreign investors bought almost USD eight billion of stocks in 2006, and a rising market is expected to encourage more inflows, which would add to demand for the Rupee.

Traders said the dollar's weakness against the Euro and Yen also helped the Rupee, as it led exporters to sell Dollars. The Yen edged up from a 13-month low versus the Dollar on expectations the Bank of Japan would raise interest rates this week.

After gaining in the past few sessions, premia finally rose up as importers were seen covering short positions. Six-month and Twelve-month premia ended at 3.32 per cent (3.21 per cent) and 2.89 per cent (2.80 per cent), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.31 per USD, up by 30 paise from its Friday's rate of Rs 44.61 per USD, an RBI spokesperson here said.

However, the performance of the domestic unit against other currencies was mixed. The Rupee was down against the Euro at Rs 57.32/34 (57.30/32) per unit, it was Rs 87.01/03 (86.55/57) per unit against Pound Sterling, and at Rs 36.74/76 (36.86/88) per 100 units against the Japanese Yen, dealers said.

UNI