Rupee ends softer at 44.24/25 against USD

Mumbai, Mar 14 (UNI) The spot Rupee today closed lower at 44.24/25 per US dollar against its previous close of 44.20, dealers said.

They informed that ''Rupee ended off lows as dollar sales from exporters prompted liquidation of dollars by banks.'' The spot Rupee fluctuated in a narrow range between Rs 44.25 and 44.35 in the intra-day trades. There was modest dollar buying support from exporters and bankers.

The widely traded 8.07 per cent, 2017 paper closed at Rs 100.72 against its previous close of Rs 100.68.

The bonds ended almost flat. Pared intra-day gains post higher-than-expected auction cut-offs of Treasury bills and 6.65 per cent, 2009 under MSS.

Agum Gupta Head, Forex of the city based Standard Chartered Bank told UNI ''I don't think the support will hold this time. We are looking at dollar-yen piercing through that level as the momentum picks up and we are looking at Rs 115 breaking this time. It's a mix bag. The main action right now is that equity markets are getting sold and Yen carry trades are getting unwind. So keeping those two things in mind I think some people will be risk averse and equity markets will remain weak. We expect Dollar-Rupee to head upward, I am looking at Rs 44-50 by the end of the week.'' 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 3.41 per cent (3.05) and 3.31 per cent (2.97), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.31 per US dollar, down by nine paise from its yesterday's rate of Rs 44.22 per USD, according to a RBI spokesperson here.

Besides, the domestic unit witnessed a firm trend against major world currencies. Against the Euro it closed high at 58.24/26 (58.32/3), while Pound finished at 84.96/98 (85.30/32) per unit each and Yen was quoted at 38.00/38.02 (37.58/60) per 100 units, brokers added.

UNI