Rupee closes at four week high at 47.70 per US dollar

Mumbai, Nov 4 (UNI) The Rupee today closed at a four-week high at 47.70 against the US dollar with a big gain of 96 paise from its last close of 48.66 on heavy selling of dollars by foreign banks and others in view of strong trend in equities.

Rupee resumed low at 48.72, but later fluctuated in a wide range between 47.70 and 48.94 per dollar in intra day trade.

The Indian Unit rose in afternoon trade, aided by some likely inflows into the local stock market and unwinding of long dollar positions by banks, a dealer said.

Dealers said there were some inflows coming into the stock market but most of the rupee's rally was helped by unwinding of long dollar positions by banks on the back of easing in the non-deliverable forward rates.

Foreign funds have sold a net USD 12.8 billion worth of Indian shares so far in 2008, after buying a record USD 17.4 billion last year.

However, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 48.62 per unit, down by 34 paise, against its yesterday's rate of Rs 48.96 per dollar. The reference rate for Euro also slid by Re 1.78 to Rs 61.30 per unit from its last close of Rs 63.08 per unit, a RBI release said.

Meanwhile, the six-month and annualised forward dollar premiums were higher by 2.17 (2.12) per cent and 1.58 (1.52 ) per cent respectively.

The Rupee closed at a four week high at 61.08/10 (62.56/58) per unit against the Euro. It closed at 75.80/82 (78.82/84 ) per unit against the Pound Sterling and at 47.94/96 (49.05/07) per hundred units against the Japanese Yen, brokers added.

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