Rupee on recovery mode, ends at 49.88 per US dollar

Mumbai, Oct 27 (UNI) The Rupee today recovered modestly to 49.88 per US dollar with a small gain of 12 paise on some good demand for the greenback from exporters in view of bearish phase on the bourses.

The Indian unit resumed low at 50.05 per dollar and later fluctuated in a narrow range between 49.86 and 50.15 during the session.

Dealers said the Rupee weakened to a record low as a steep fall in the stock market heightened concerns of more foreign fund outflows offsetting dollar sales by the central bank to hold up the rupee. The partially convertible rupee was at 50.16 per dollar, about 0.4 percent weaker than 49.950/965 at close on Friday when it hit 50.00 during the trade.

Shares tumbled across the board to their lowest in three years on fears of a global recession despite measures taken by policy makers across the world, a leading dealer added.

However, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 50.09 per unit, up by 14 paise, against Friday's rate of Rs 49.95 per dollar.

However, the reference rate for Euro fell by Rs 89 paise to Rs 62.76 per unit from its last close of Rs 63.65 per unit, a RBI release said.

Meanwhile, the six-month and annualised forward dollar premiums were lower by 2.06 (2.52) per cent and 1.52 (1.68) per cent respectively.

The rupee recovered modestly at 61.96/98/(63.90/92) per unit against the Euro. It closed at 76.90/92 (77.88/90) per unit against the Pound Sterling and at 53.50/52 (53.44/46) per hundred units against the Japanese Yen.

Trading in forex market will remained closed tomorrow for Diwali Festival. However, Mahurat trading for the Vikram Samvat Year 2065 would be held on Wednesday at usual time, brokers added.

UNI AR OBB AG1818