Rupee closes lower against Dollar at 44.33/34

Mumbai, Jan 18 (UNI) The Rupee closed lower today at 44.33/34 against the US dollar as compared to the previous day's close of 44.19/20, dealers said.

The Indian Rupee slid from a near one-year high on Thursday as traders squared off short positions in the dollar due to suspected intervention by the central bank.

A fall in the Japanese yen to its weakest level against the dollar in almost 4 years, after the Bank of Japan kept interest rates steady, also weighed on the Rupee.

The partially convertible Rupee ended at 44.33/34 against the dollar, after rising to 44.14 in early trade, to be 0.3 per cent weaker than the previous day's 44.18/20.

The central bank intervened during November, data released on Tuesday showed, when the Rupee was trading below its current levels.

The central bank intervenes to protect export competitiveness and to curb excessive volatility in the Rupee. however, it is is not expected to intervene aggressively, as selling Rupees might increase cash in the banking system, fuelling credit growth and inflation pressures.

The central bank reviews its policy on January 31 and traders are preparing for an increase in interest rates.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.25 per US dollar, up by two paise from it's yesterday's rate of Rs 44.27 per US dollar, an 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 57.38/40 (57.06/08) per unit, it was Rs 87.40/42 (86.85/87) per unit against Pound Sterling, and at Rs 36.50/52 (36.66/68) per 100 units against the Japanese Yen, dealers said.

UNI