Rupee closes softer at 44.49/50 per US dollar

Mumbai, Mar 7 (UNI) The Rupee today drifted lower by five paise to close at 44.49/50 per US dollar compared to it's previous close of 44.46/47, as exporters sold and banks liquidated dollars along with local share markets erased some losses, brokers said. The spot rupee finished lower at Rs 44.50 against its previous close of Rs 44.47.Before it fluctuated between 44.43 and 44.58 per US dollar during the session.

The widely traded 8.07 per cent, 2017 paper closed at Rs 100.82 against its previous close of Rs 100.80.

The bonds ended little changed as players stayed away ahead of auctions on Friday. Higher cut-off yields at T-bill auctions leads to some selling on bearish liquidity view.

Forward premia dollar was down by four paise, on short-covering by local operators.

Six-month and 12-month forward premia ended at 2.94/96 per cent (2.87/88) and 2.89/90 per cent (2.84/85) respectively.

Earlier in the day, the Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.50 per US dollar, up by six paise from its yesterday's rate of Rs 44.56 per USD, according to a RBI spokesperson.

Besides, the rupee displayed a lower trend against major world currencies. The Euro closed low at 58.35/36 (58.28/30), while Pound finished at 85.73/74 (85.71/72) per unit each and Yen was quoted at 38.15/16 (38.15/16) per 100 units, brokers added.

UNI