Rupee up 4 paise Vs dollar

Mumbai: The rupee today ended up marginally by four paise at 49.93/94 against the US currency, on fresh selling of dollars by banks and exporters amid sustained foreign capital inflows. Dealers said renewed selling of dollars by banks and exporters in view of persistent capital inflows from foreign funds into the equity market mainly boosted the rupee.

The rupee moved between 49.79 and 49.94 at the Interbank Foreign Exchange (Forex) Market before settling at 49.93/94, higher by four paise from its previous close. Foreign institutional investors (FIIs) made substantial purchases over the past two trading sessions. FIIs bought shares worth a net Rs 1,298.64 crore yesterday as per provisional data from the stock exchanges.

Meanwhile, the BSE benchmark index Sensex ended higher by 226 points at 17,813.62. The US crude oil was trading below USD 107 a barrel in London today. The dollar index of six major currencies was up by 0.25 per cent in European market. In London, the dollar hit a 11-month high against the yen and hovered near a seven-week high versus a basket of currencies, supported by expectations that a US economic revival will keep the Federal Reserve from resorting to fresh stimulus.

The rupee premium for the forward dollar recovered on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable in August finished up at 175-177 paise from yesterday`s close of 174-176 paise and far-forward contracts maturing in February also closed higher at 303-305 paise from 299-301 paise previously.

The RBI has fixed the reference rate for the US dollar at 49.8450 and for euro at 65.6151. The rupee fell back against the pound sterling to finish at Rs 78.22/24 from Monday`s close of Rs 78.13/15 while improved slightly better against the euro to Rs 65.50/52 from Rs 65.51/53 previously. It, also, firmed up further against Japanese yen at Rs 60.40/42 per 100 yen from last close of Rs 60.81/83.