Rupee rebounds sharply by 29 paise Vs dlr

Mumbai, Jan 11 (PTI) The rupee on Tuesday rebounded
sharply by 29 paise to close at 45.16/17 against the US
currency on heavy dollar selling by banks and exporters
despite sustained capital outflows.
Dealers said that some banks, mainly foreign, and
exporters sold dollar heavily which aided the rupee sentiment.
At the Interbank Foreign Exchange (Forex) market, the
domestic unit opened better at 45.40/41 a dollar from its last
close of 45.45/46 following initial firmness in local stocks.
It later moved in a range of 45.43 and 45.15 before
settling the day at 45.16/17, a net rise of 0.64 per cent.
The BSE benchmark Sensex, which was up by over 207 points
at early stages, closed lower by 27.78 points, or 0.14 per
cent. Foreign Institutional Investors pulled out nearly USD
520 million from equities in last straight four trading
sessions.
However, the dollar index was up by nearly 0.1 per cent
against a basket of currencies in Europe on Tuesday.
Global crude oil was trading above USD 89 a barrel in
London Tuesday.
Meanwhile, Indian Prime Minister Manmohan Singh on
Tuesday held a meeting with senior ministers to find ways to
tame food inflation which has crossed 18 per cent.
The rupee premium for the forward dollar remained firm on
sustained paying pressure from banks and corporates. The
benchmark six-month forward dollar premium payable in June
ended better at 138-140 paise from 137-139 paise previously.
Far-forward contracts maturing in December also finished
higher at 256-258 paise from 251-253 paise on Tuesday.
The Reserve Bank of India fixed the reference rate for
the dollar at Rs 45.32 and the euro at Rs 58.70.
The rupee recovered against the pound sterling to end at
Rs 70.34/36 from Tuesday's close of Rs 70.58/60 and also
recouped against the yen to Rs 54.37/39 per 100 yen from Rs
54.63/65 previously.
It, however, continued to rule strong to settle at Rs
58.46/48 per euro from its last close of Rs 58.77/79.