Rupee appreciates three paise against dollar

Mumbai, July 15 (BSS/PTI) In lacklustre trading, the rupee yesterday appreciated by three paise to close at 44.49/50 against the US currency on mild dollar selling by exporters amid renewed capital inflows.

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened strong at 44.45/46. It settled the day at 44.49/50.

Wednesday, it had gained 18 paise.

Forex dealers said the local unit gained as exporters sold dollars on expectations of a fall in the US currency overseas after Moody's Investors Service Wednesday warned that it was putting American debt on review for a possible downgrade.

Renewed Foreign Institutional Investors (FIIs) inflows also aided the rupee sentiment, they added.

Alpari Financial Services (India) CEO Pramit Brahmbhatt said,
"The rupee traded range bound to slightly strong, mainly taking
cues from local equities which closed on a positive side. Rupee
gain was capped as euro and GBP weakened against the greenback."

"The rupee closed better Thursday amid major Asian units
trading weaker this afternoon. One month offshore forward
contract is quoting at 44.68-71 levels," India Forex Advisors CEO
Abhishek Goenka said.

The dollar index was up by over 0.3 per cent against a basket
of currencies while New York crude oil was trading above USD 98 a
barrel in European market Thursday.

Meanwhile, the Bombay Stock Exchange benchmark Sensex
finished up by over 22 points or 0.12 per cent.

After pulling out USD 205.28 million from equities, FIIs
infused USD 33.73 million Wednesday, as per SEBI data.

The rupee premium for the forward dollar fell back on fresh
receivings by exporters. The benchmark six-month forward dollar
premium payable in December concluded lower at 124-1/2- 126 paise
from Wednesday's level of 127-129 paise. Far-forward contracts
maturing in June also ended down at 222-1/2-224 paise from 227-
229 paise previously.

The RBI has fixed the reference rate for the dollar at Rs
44.5278 and the euro at Rs 63.1503.

The rupee dropped further against the pound sterling to end
at 71.72/74 from Wednesday's close of Rs 70.99/71.01 and also
remained weak at Rs 63.17/19 per euro from Rs 62.63/65 yesterday.
It settled further down against the Japanese yen at Rs 56.33/35
per 100 yen from last close of Rs 56.16/18.

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