Rupee up by four paise against dollar

Mumbai: The rupee on Wednesday appreciated by four paise to close at 44.74/75 against the US dollar on enlarged portfolio investments due to bullish equities.

Dealers, however, said that some dollar buying by importers, mainly oil refiners, kept the rupee rise under control.

The Bombay Stock Exchange benchmark Sensex today flared up by another 169.38 points or 0.89 per cent, gaining a total 1,203.78 points or 9.87 per cent in straight seven sessions of gains.

Foreign Institutional Investors (FIIs) injected nearly USD 1.02 billion in last six trading sessions since March 22.

Alpari Forex (India) CEO Pramit Brahmbhatt said, "Rupee traded positively today supported by positives in the domestic stock market and strong capital inflows. However, dollar demand by oil importing companies acted as a deterrent."

"The trading range for the USD/INR will be between 44.55- 45.05 tomorrow," he added.

At the Interbank Foreign Exchange (Forex) market, the local unit opened slightly better at 44.76/77 a dollar from previous close of 44.78/79.

It later was trapped in a tight range between 44.7950 and 44.72 before concluding at 44.74/75.

However, in New York the dollar rose against major currencies yesterday after a US Federal Reserve official said policy markers may not be able to wait for the resolution of global crisis to begin withdrawing their ultra-accommodation monetary policy.

The rupee premium for the forward dollar rates were not (not) received.

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.77 and the euro at Rs 63.02.

The rupee fell back against the pound sterling to end at Rs 71.86/88 from Tuesday`s close of Rs 71.48/50 and moved down further to Rs 63.04/06 per euro from Rs 62.97/99 previously.

It, however, remained firm against the Japanese yen to finish at Rs 53.81/83 from last close of Rs 54.49/51.