Rupee closes softer at 44.25/26 against US dollar

Mumbai, Feb 22 (UNI) The rupee today closed softer at 44.25/26 against the US dollar from its previous close of 44.18/19 at the interbank foreign exchange (Forex) market here on fresh speculative buying support of dollar by foreign and nationalised banks, dealers said.

The domestic unit opened higher at 44.16/17 against the previous day's close of 44.18/19 on scattered selling pressure of dollar by bankers. Later, it recorded a high at 44.29/30 and a low at 44.22 during the intra-day trades. Business volume was slightly improved due to some good demand of dollars by local dealers.

The Reserve Bank of India (RBI) bought about USD 3.5 billion in the first half of February. India's foreign exchange reserves rose by about USD five billion on February nine from a week earlier, indicating the extent to which the central bank has entered the currency market.

Forward premia ended 4-6 paise lower on account of buy-sell swap contracts. Six-month and 12-month forward premia closed at 3.09/10 per cent (3.80/82) and 2.96/98 per cent (3.15/16) respectively.

Earlier in the day, the RBI fixed the reference rate at Rs 44.25 per US dollar, down by six paise from its yesterday's rate of Rs 44.19 per USD.

In cross-currency trade, the rupee ended firm against all the three major currencies. Euro closed at Rs 57.98/58 (57.98/58.00) per unit. It closed for Pound at Rs 86.29/30 (86.22/27) per unit and Rs 36.40/42 (36.52/55) per 100 units for the Yen, traders added.

UNI