Rupee closes at 44.11/12 against USD

Mumbai, Mar 16 (UNI) The Rupee today ended firm at 44.11/12 per US dollar against its previous close of 44.19/20, as banks sold dollars expecting liquidity to tighten and as dollar demand from importers stayed feeble, dealers said.

The Rupee fluctuated between 44.11 and 44.22 in intra-day trades, which finally ended at 44.11/12 with a modest gain of four paise from its last close.

The widely traded 8.07 per cent, 2017 paper closed higher at Rs 100.35 against its previous close of Rs 100.54.

The bonds ended higher on some SLR-backed demand. Concerns of more monetary tightening following Chidambaram's comments on inflation loom.

Forward premia displayed an upward trend as importers brought dollar in forwards at lower levels. Six-month and 12-month forward premia closed at 3.55 per cent (3.49) and 3.20 percent (3.17), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 44.17 per US dollar, up by five paise from its yesterday's rate of Rs 44.22 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 58.68/70 (58.30/32), while Pound finished at 85.78/80 (85.40/42) per unit each and Yen was quoted at 37.78/80 (37.60/62) per 100 units, brokers added.

UNI