Rupee closes high at 47.66 per US dollar

Mumbai, Nov 7 (UNI) The Rupee today ended firm at 47.66 against the US dollar with a small gain of eight paise from the previous close of 47.74 on sustained selling of dollars by importers in view of better trend on the Indian bourses.

Traders said a decision by the central bank to sell dollars directly to bulk dollar buyers such as oil importers, as part of measures to bring stability to financial markets, had reduced one major source of rupee selling in the marketplace.

Rupee resumed high at 47.92 and was quoted between 47.62 and 47.92 in intra day trade.

''The market is very thin these days, there is no volume, so even if there is (a) little demand the dollar/rupee goes up and with a little supply it goes down,'' a leading forex dealer said.

''However, the net demand is still more than the supply, and the market is still confused. Ultimately, since there are no inflows happening, the pressure on the rupee remains,'' he said.

Asian stocks fell for the third day and commodity prices tumbled as layoffs and corporate profit warnings piled up. US crude oil futures fell to a one-and-a-half year low below USD 60 a barrel on expectations of a drastic pullback in energy demand.

One-month offshore non-deliverable forward contracts were quoting at 48.10/30, weaker than the onshore spot rate.

However, the Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 47.76 per unit, up by 9 paise, against its yesterday's rate of Rs 47.67 per dollar and the reference rate for Euro fell by 38 paise to Rs 60.81 per unit from its last close of Rs 61.19 per unit, n RBI release said.

Meanwhile, the six-month and annualised forward dollar premiums were higher by 3.40 (2.90) per cent and 2.50 (2.02) per cent respectively.

The Rupee closed high at 60.90/92 (61.28/30) per unit against the Euro. It closed at 74.96/98 (76.08/10) per unit against the Pound Sterling and at 48.96/98 (48.48/50) per hundred units ainst the Japanese Yen, brokers added.

UNI AR OBB NP1842