Rupee closes in nearly seven years high at 43.05/06 against USD

Mumbai, Mar 28 (UNI) The spot Rupee rose to its highest level in nearly seven years and ended stronger at 43.05/06 against the US dollar compared to its previous close of 43.29/30, on sustained selling of Dollar by banks, dealers said.

Rupee soared by another 25 paise to close at 43.05, before it resumed high at 43.14/16. It registered a high of 43.02/03 and a low of 43.23/24 in intra-day trades. Growing liquidity crisis in the money market due to higher call rates in early trade and MSS bond auctions by RBI resulted in dollar liquidation in the currency market. Meanwhile, Rupee failed to cross the psychological level of 43/per US dollar owing to state-run bank's presence in the market.

Although Sensex lost 240 points in the session, strong FII inflows continued to support the Rupee, a leading trader said.

Forward premia started on a stronger note before slipping back on account of profit booking. Six-month and Twelve-month forward premia closed at 5.31 per cent (5.20/22) and 4.02/04 per cent (5.30/32), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 43.14 per US dollar, up by 25 paise from its Monday's rate of Rs 43.39 per USD, according to a RBI spokesperson here.

Besides, the domestic unit witnessed a lower trend against major world currencies. Against the Euro it closed low at 57.12/14 (57.48/50), while Pound finished at 84.12/14 (84.92/94) per unit each and Yen was quoted at 36.54/56 (36.60/62) per 100 units, brokers added.

UNI