Rupee rises, ends at 44.36 per Dollar

Rupee gained another two paise from Tuesday's close of Rs 44.38/39, but finished sharply lower from highs of Rs 44.29/30.

The Rupee on Wednesday ended higher at Rs 44.36/37 per Dollar on the back of steady FII inflows amid a retreating dollar overseas as Dollar demand from oil corporates and importers limited gains to the minimum due to a fresh surge in crude oil prices.

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In choppy two-way trade at the Interbank foreign exchange (Forex) market, the Rupee gained another two paise from Tuesday's close of Rs 44.38/39, but finished sharply lower from highs of Rs 44.29/30 struck in early deals following the dollar's overnight fall against the Euro, dealers said.

Rupee rallied smartly by 10-1/2 paise on Tuesday.

Persistent FII inflows into the booming stock markets amid a retreating Dollar overseas drove the Rupee to peaks of 44.29/30 in early trade but renewed Dollar demand from oil corporates following a fresh surge in crude prices wiped out a major part of the Rupee gains, dealers said.

Foreign Institutional Investors (FIIs) injected $86.40 million into equity markets on Monday after pumping in a massive $651.30 million last week.

World crude oil prices on Wednesday rose to $61.87 a barrel on lingering concerns over the situation in Middle East and Nigeria in spite of a build up in US crude stocks.

Some dealers said that the central bank's surrogate intervention through state-run banks curbed Rupee gains in order to give exporters a competitive edge.