Rupee closes higher at 44.19/20 against USD

Mumbai, Mar 15 (UNI) The spot Rupee today finished higher at 44.19/20 per US dollar against its previous close of 44.24/25, as banks sold dollars after demand faded towards end of day.

Oil companies were notable dollar buyers today, dealers said.

The widely trading 8.07 per cent, 2017 paper ended lower at Rs 100.55 against its previous close of Rs 100.72.

The bonds ended lower. Banks, PDs ignored buying before advance tax outflows on Friday. Fear of fresh monetary tightening by RBI looms. SLR-buying supported prices at lower-end.

A leading dealer said that the market is still gearing itself for a Rupee appreciation or at least expecting Rupee appreciation though it might not happen at a same pace as it was expected earlier. There is of course the influence of the Central Bank on what happens to Rupee so that is also going to play a role in whether or how much Rupee appreciates.

''But the structural view on the Rupee and the bullishness I do not think has changed so much it maybe that there is a bit of lead and lag or you have run through a short period when it does not appreciate or in fact depreciate. But that view appears intact that it should appreciate overtime, he added.

Forward premia displayed a mixed trend as importers bought of buying and selling in forwards at lower levels. Six-month and 12-month forward premia closed at 3.49 per cent (3.41) and 3.17 percent (3.31), respectively.

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

Besides, the domestic unit witnessed an upward trend against major world currencies. Against the Euro it closed high at 58.30/32 (58.24/26), while Pound finished at 85.41/42 (84.96/98) per unit each and Yen was quoted at 37.61/62 (38.00/38.02) per 100 units, brokers added.

UNI