Mumbai, Sep 17 (UNI) The Rupee today recovered smartly by 54 paise and ended positive at 46.34/35 against the US dollar ained heavy dollar selling pressure by Nationalised banks following the Reserve Bank of India's intervention to make rate on deposits by non residents more attractive.
Rupee rose sharply, posting its biggest single-day fall yesterday, supported by the RBI's move to sell off dollars at 46.70 to stabilise the Indian currency.
Rupee was trading at 46.35/37 per dollar, 1.2 percent stronger than 46.89/90 at close on Tuesday when it had fallen to 46.99 during trade, its weakest since July 24, 2006.
The partially convertible rupee resumed high at 46.36/38 per dollar, and later fluctuated in a broad range between 46.25 and 46.72 during the session. It finally ended firm at 46.34/35 per dollar.
The Indian currency fell to its weakest level of against the dollar, since July 24, 2006, on increasing demand from banks earning arbitrage between domestic and offshore markets amidst fluctuating sentiments in the stock market, a leading forex dealer said.
There was intervention by Reserve Bank of India at different levels to cushion the rupee and prevent its sharp depreciation.
Meanwhile. the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 46.34 per unit, down by 29 paise, against yesterday's rate of Rs 46.63 per dollar.
However. The six-month and annualised forward dollar premium was quoted higher at 1.29 (1.07) per cent and 1.15 (0.94) per cent respectively.
The Rupee ended the day a gainer at 65.56/58 (66.75/77) per unit against the Euro. It closed at 82.53/55 (83.72/74) per unit against the Pound Sterling. Rupee ended at 43.75/77 (45.10/12) per hundred units against the Japanese Yen.
UNI AR OBB NP1842