Rupee closes higher against USD at 44.20/21

Mumbai, Jan 29: The Rupee closed higher today at 44.20/21 against the US dollar as compared to the previous day's close of 44.23/24, dealers said.

Rupee rose by 0.07 per cent and ended at 44.21/USD. Importer demand and firm dollar against major currencies weakened the Rupee beyond the levels of 44.30/USD in morning trade.

However, dollar supplies by exporters and foreign banks helped the Rupee to recover from its initial losses. Rupee is expected to remain steady, although activities of state-run banks need to be monitored.

Forward premia remained choppy in the trade and ended four paise lower from its last close. Six-month and Twelve-month premia closed at 3.87 per cent (3.82) and 3.22 per cent (3.23), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.27 per USD, down by three paise from its Thursday's rate of Rs 44.24 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 57.08/10 (57.40/42) per unit, it was Rs 86.47/49 (87.10/12) per unit against Pound Sterling, and at Rs 36.25/27 (36.66/68) per 100 units against the Japanese Yen, dealers said.

Trading in Forex market will remain officially closed tomorrow on account of the death annivesary of Mahatama Gandhi and Moharrum, traders added.

UNI