Rupee closes modestly high at 42.85/86 against USD

Mumbai, Apr 12: The spot Rupee today ended slightly higher at 42.85/86 against the per US dollar, compared to yesterday's close of 42.88/90, on sustained modest purchased of dollar by traders and oil companies, dealers said.

Indian spot Rupee resumed flat at 87/89 against per USD, later it recorded a low of 42.94/95 and a high at 42.82/83. Finally, it rose by just three paise in the session and closed at 42.85 against 42.88/90 on the previous day's close.

Earlier, Rupee fell further away from its 8-year high, hampered by robust demand for dollars by traders and oil firms. Later, Rupee clawed back as banks resumed dollar liquidation to raise funds to meet the new CRR requirements. However, Rupee failed to take advantage of this momentum as state-run banks once again started consuming dollars to keep a control on Rupee's gains.

Forward premia rose by eight paise as importers covered short dollar positions amid signs of RBI intervention. Six-month and Twelve-month forward premia closed at 5.36 per cent (5.31) and 4.2 per cent (4.18), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 42.86 per US dollar, up by one paisa from its yesterday's rate of Rs 42.87 per USD, according to a RBI spokesperson here.

Besides, the domestic unit witnessed a weaker trend against major world currencies. Against the Euro it closed stronger at 57.52/42(57.40/42), but Pound finished lower at 84.50/52 (84.54/56) per unit each and Yen was also quoted higher at 35.80/82 (35.84/86) per 100 units, brokers added.

UNI