Rupee finishes higher at 44.20 against USD

Mumbai, Mar 13 (UNI) The spot Rupee today finished higher at 44.20 against its previous close of 44.23, dealers said.

The Rupee ended higher as banks liquidated dollars noting weak demand, hopes of FII inflows. Weak dollar also helped.

The Rupee resumed steady at 44.23/25, later it registered the day's high at 44.21 and a low at 44.25 during the session on some short-covering and little dollar demand by banks.

The bonds ended lower. Concerns of liquidity heightened post RBI Deputy Governor Usha Thorat's comments on MSS auction. High state-loan cutoffs weighed on mood.

A leading Forex dealer said that liquidity is likely to go out on account of advance tax and this liquidity what we see is post government spending and mainly post RBI intervention, so post advance tax liquidity will go out''.

''RBIs effort and they have made it very clear through their statement and through their actions is that they would like to keep liquidity tight. So incase the government spending post the advance tax is much more than what they anticipate and it actually creates liquidity, then there could be a possible action even before the policy,'' he pointed out.

Forward premia was at higher levels in the session as importers bought forwards at lower levels. Six-month and 12-month forward premia closed at 3.05 per cent (3.00) and 2.97 per cent (2.92) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.22 per US dollar, same as yesterday's rate, according to a RBI spokesperson here.

Besides, the domestic unit displayed an encouraging higher trend against major world currencies. Against the Euro it closed high at 58.32/34 (58.28/30), while Pound finished at 85.30/32 (85.77/78) per unit each and Yen was quoted at 37.58/60 (37.54/56) per 100 units, brokers added.

UNI