Rupee closes at two week high at 48.66 per US dollar

Mumbai, Nov 3 (UNI) The Rupee today ended at a two week high at 48.66 against the US dollar with a big gain of 94 paise from its last close of 49.60 on sustained heavy selling pressure of dollars by foreign banks and others in view of bullish phase in equities.

The rupee has shed about 19 percent so far in 2008 and hit a record low of 50.29 last week. It resumed firm at 49.05 and later moved in a wide range between 48.60 and 49.10 in intra day trade.

''The dollar has weakened against all major currencies and, moreover, the RBI measures to infuse liqudity helped the stock market move up,'' a leading forex dealer said.

''The rupee may not move up much, 48.40 should hold, but the market will continue to remain very volatile. The volumes too were quite low today,'' he added.

However, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 48.96 per unit, down by 29 paise, against Friday's rate of Rs 49.25 per dollar. The reference rate for Euro inched up by Rs 24 paise to Rs 63.08 per unit from its last close of Rs 62.84 per unit, a RBI release said.

Meanwhile, the six-month and annualised forward dollar premiums were lower by 2.12 (2.28) per cent and 1.52 (1.56) per cent respectively.

The Rupee closed at a two week high at 62.56/58 ( 62.70/72) per unit against the Euro. It closed at 78.82/84 (79.72/74 ) per unit against the Pound Sterling and at 49.05/07 (50.42/44) per hundred units against the Japanese Yen, brokers added.

UNI AR OBB AG1910