Rupee closes high at 43.45/46 against USD

Mumbai, Mar 21 (UNI) The Rupee today ended higher at 43.45/46 against the US dollar compared to 43.73/75 on sustained selling of Dollar by banks.

The Rupee opened high at 43.66/68, later, it recorded a high at 43.48 and a low at 43.72 during intra-day trades. Finally, the Indian currency hiked by 28 paise and closed firm at 43.45 per USD as banks sold dollars to raise cash as tightness continued.

The widely traded 8.07 per cent bonds, 2,017, closed higher at Rs 100.20 against its previous close of Rs 99.95.

The bonds rose on hopes that call rate may ease after banks defer three-day strike next week. Buying for SLR needs also aided rise in price.

A leading banker told UNI ''There is no intervention by the RBI.

The Rupee has been continuously appreciating. Yes, it quite agreed if intervention comes, the Rupee will stabilise around that level.

But that's a big 'if', we are not aware about that when it would happen. But the fact remains that this liquidity tightness, we expect, will improve in the next couple of days because normally government starts spending at the end of the financial year.'' ''Once liquidity ease takes place, I think the pressure would be off in the Forex market also or else if RBI starts buying dollars to provide liquidity, either way the liquidity improves the pressure would come off'', he added.

Forward premia displayed a firm trend as importers purchased Dollar in forwards at lower levels. Six-month and 12-month forward premia closed at 4.70/72 per cent (4.38/40) and 3.73/75 per cent (3.60/62), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 43.63 per US dollar, up by 35 paise from its yesterday's rate of Rs 43.98 per USD, according to a RBI spokesperson here.

Besides, the domestic unit witnessed a mixed trend against major world currencies. Against the Euro it closed high at 57.60/62 (58.84/86), while Pound finished at 84.80/82 (85.16/18) per unit each and Yen was quoted at 36.78/80 (36.96/98) per 100 units, brokers added.

UNI