Rupee gains 3 paise Vs dlr on firm equities

Posted By: Pti
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Mumbai, Jan 12 (PTI) The rupee today edged up by threepaise to end at nearly one-week high of 45.13/14 against theUS currency in a lacklustre but two-way trading.

Sustained dollar selling by some banks exporters onexpectations of increased capital outflow also helped therupee rise.

At the Interbank Foreign Exchange (Forex) market, thelocal currency opened higher at 45.08/09 a dollar from itslast close of 45.16/17 and immediately logged a high of 45.05on firm start in equities.

But the Bombay Stock Exchange benchmark Sensex dipped bynearly 148 points after late morning deals when the steep fallin industrial production data filtered in, resulting the rupeeto follow the suit and dropped to a low of 45.2050.

However, recovery in equities in the afternoon sessionand weak dollar overseas supported the rupee and it settledthe day at 45.13/14, slightly better than the previous close.

The Sensex today ended higher by 337.76 points or 1.76per cent after last six-session of losing string.

Foreign Institutional Investors (FIIs) sold shares worthUSD 767.61 million in five sessions since January 5.

The dollar index, gauging of six major currencies, wasdown by a mere 0.03 per cent in European market today.

Global crude oil was trading near USD 91 a barrel inLondon today.

Meanwhile, Index of Industrial Production (IIP) plungedto 2.7 per cent in the month of November 2010 from 11.3 percent same month year-ago.

The rupee premium for the forward dollar turned negativeon fresh receivings by exporters. The benchmark six-monthforward dollar premium payable in June eased to 137-139 paisefrom 138-140 paise on Tuesday.

Far-forward contracts maturing in December also settleddown at 253-255 paise from 256-258 paise previously.

The Reserve Bank of India fixed the reference rate forthe dollar at Rs 45.16 and the euro at Rs 58.68.

The rupee improved further slightly against the poundsterling to end at Rs 70.33/35 from Tuesday''s close of Rs70.34/36 and also rose against the yen to Rs 54.23/25 per 100yen from Rs 54.37/39 previously.

It, however, fell back to finish at Rs 58.52/54 per eurofrom 58.46/48.

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