Rupee ends up over dollar

Lack of dollar demand after a fall in crude prices pushes the Indian currency sharply up against the greenback.

india Updated: Sep 04, 2006 20:16 IST

The Rupee on Monday appreciated sharply against the US currency and ended at Rs 46.34/35 per dollar due to lack of dollar demand after a fall in crude prices.

Weak dollar against other world currencies also boosted the rupee sentiment.

At the Interbank Foreign Exchange (Forex) market, the Indian unit opened firm at Rs 46.45/47 per dollar from Friday's close of Rs 46.5150/5250 a dollar and thereafter, moved in a wide range of Rs 46.2800 and Rs 46.4700, before ending at Rs 46.34/35 per dollar, remarkably higher than the previous weekend close.

The world crude eased as New York's main contract, light sweet crude for delivery in October, ended down by USD 1.07 per barrel to USD 69.15, as markets ruled out the likelihood of immediate sanctions being imposed on major oil producer Iran, forex dealers said.

Similarly, in London trade, price of Brent North Sea crude for October delivery lost nine cents to 69.06 dollars per barrel in electronic trade.

In overseas market, the dollar ended lower against its major rivals following a mixed bag of U S data, including a slightly stronger-than-expected August consumer sentiment survey, a fall in July construction spending and a slight dip in August manufacturing activity, they said.

Meanwhile, the Indian unit also firmed up against the British pound and the euro, while ended weak against the Japanese yen.

However, the Indian currency fell against the Japanese yen to Rs 39.93/95 per 100 yen from Rs 39.68/70.

The Reserve Bank of India (RBI) fixed the reference rate for dollar at Rs 46.44 per dollar from Rs 46.53 last Friday. The bank fixed the reference rate for the single European unit at Rs 59.68 per euro from the previous fixing of Rs 59.57/66. The reference rate for pound was fixed at Rs 88.5263 per pound from Rs 88.57/61 per pound and for the Japanese yen, RBI fixed the reference rate at Rs 39.87 per 100 yen from the previous level of Rs 39.67/72.

Benchmark six-months forward dollar premia payable in February fell further sharply to 29-30-1/2 paise from the previous level of 30-1/2-32 the Far-forwards maturing in September 2007 was quoted lower at 61-63 paise from the last level of 63-1/2-65 paise.

First Published: Sep 04, 2006 20:16 IST