Rupee closes low at 44.2/22 against USD

Mumbai, Feb 26 (UNI) The Rupee closed today lower at 44.21/22 per US dollar against 44.18/20, the previous day's close, on scattered demand of dollar by foreign banks.

Rupee dipped by just one paisa to close at 44.21 per USD. Apart from dollar demand by importers to settle overseas payments, absorption of dollars by state-run banks at regular intervals pushed the Rupee down to intra-day low of 44.22 per USD. Early in the session, Rupee found support on the back of expectations of huge FDI and M&A related inflows.

Forward premia opened weak, but rose later as importers covered short positions at lower levels. Six-month and Twelve-month forward premia ended at 3.24 per cent (3.17/18) and 3.01 per cent (2.98/3.00) respectively Major currencies against Rupee displayed a mixed trend such as Euro closed high at 58.13/15 (57.94/96), while Pound finished at 86.70/72 (86.50/52) per unit each and Yen was quoted at 36.63/65 (36.38/40) per 100 units, brokers said.

UNI