Rupee opens flat at 44.21/22 against USD

Mumbai, Feb 27 (UNI) The Rupee today closed steady at 44.21/22 per US dollar against 44.20/21, the previous day's close, on scattered demand of dollar by foreign banks.

The Indian Rupee was steady against the dollar on Tuesday with gains from capital inflows blocked by scattered Central Bank intervention in a bid to protect exporters' competitiveness, traders said.

Later, the partially convertible Rupee fluctuated between 44.15/16 and 44.23/25 per dollar during the intra day trades.

Traders said capital inflows remained strong, boosting sentiment for the Rupee. The government expects foreign direct investment in the fiscal year to end-March to hit a record USD 12 billion.

Robust capital flows into Asia's fourth-largest economy have helped the Rupee appreciate about 6.5 per cent since last June.

Oil prices, hovering around their highest level this year, also weighed on the Rupee. Oil was trading near USD 61 per barrel after a bout of cold weather in the United States and forecasts for a further fall in US fuel inventories.

Oil is India's largest import and higher prices put pressure on the local currency.

Forward premia opened weak, but rose later as importers covered short positions at lower levels. Six-month and Twelve-month forward premia ended at 3.38/40 per cent (3.24/25) and 3.10/3.11 per cent (3.01/02), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.17 per US dollar, up by 11 paise from its previous rate of Rs 44.28 per USD, according to a RBI spokesperson.

Major currencies against Rupee displayed a mixed trend such as Euro closed high at 58.37/38 (58.13/14), while Pound finished at 86.82/84 (86.70/72) per unit each and Yen was quoted at 37.01/02 (36.63/65) per 100 units, brokers said.

UNI