Rupee ends stronger at 42.83/84 against USD

Mumbai, Apr 10 (UNI) The Rupee today ended stronger at 42.83/84 agianst the USD, compared to yesterday's close of 42.90/92, on demand of dollar by traders and oil companies, dealers said.

The Indian currency opened higher at 42.89/91 and touched a day's high of 42.76/77. It later attained a low of 42.98/99 before closing at a firm rate of 42.90/92 with the modest gain of seven paise from the last close.

According to the traders, in the early morning trade, the Rupee drifted down and nearly weakened past 43, hampered by dollar demand by traders and oil companies. However, it staged a smart recovery as banks were seen shorting dollars in the currency market to meet the new statutory reserve requirements imposed by the central bank recently.

Volatility in the spot market was reflected in the forwards also as the levels moved sideways. At the end of the day, forward US dollar premia ended 3-4 paise lower. Six-month and Twelve-month forward premia ended at five percent and 4.04 percent rates respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 42.86 per US dollar, up by two paise from its yesterday's rate of Rs 42.88 per USD, according to a RBI spokesperson.

Besides, the domestic unit witnessed a stronger trend against major world currencies. Against the Euro it closed stronger at 57.36/37(57.31/32), while Pound finished higher at 84.32/33 (84.10/11) per unit each and Yen was also quoted higher at 35.86/87 (35.91/92) per 100 units, brokers added.

UNI