Rupee gains 4 paise against dollar on smart rise in stocks

Mumbai, Feb 11 (PTI) The rupee today recovered by overfour paise to close at 45.68/69 against the US currency onalternate bouts of buying and selling.

Forex dealers said that smart recovery in stocks aftermid-session helped the rupee recovery.

Foreign Institutional Investors (FIIs) sold shares worthUSD 365.4 million in three days since January 8.

However, the Bombay Stock Exchange benchmark Sensexspurted by 265.57 points or 1.52 per cent after falling byover 574 points or 3.18 per cent in straight last three days.

Global crude oil was trading above USD 87 a barrel inLondon today.

In a narrow but two-way movements at the InterbankForeign Exchange (Forex) market, the local currency openedbetter at 45.70/71 a dollar from last close of 45.7250/7350.

Later, it touched the day''s low of 45.78 on earlyweakness in equities where the Sensex was down by over 167points.

Firm dollar overseas and sustained capital outflows tooinitially weighed on the rupee. The dollar index was up bynearly 0.4 per cent against its major rivals in Europe today.

Fresh dollar selling by exporters too aided the rupee''sgain. It later touched a high of 45.64 before concluding at45.68/69.

The rupee premium for the forward dollar ended steady tobetter on stray paying pressure from banks and corporates. Thebenchmark six-month forward dollar premium payable in Julyclosed at its previous closing level of 126-128 paise.

Far-forward contracts maturing in January, however, endedbetter at 256-258 paise from 254-256 paise on Thursday.

The Reserve Bank of India has fixed the reference ratefor the dollar at Rs 45.76 and the euro at Rs 62.02.

The rupee recouped to Rs 73.01/03 against the poundsterling from Thursday''s close of Rs 73.39/41 and also firmedup to Rs 61.79/81 per euro from Rs 62.32/34 previously.

It also shot up against the yen to Rs 54.68/70 per 100yen from last close of Rs 55.32/34.