Rupee ends five paise weaker at 47.94/95 against dollar

Mumbai, July 2 (PTI) The Indian rupee turned weaker after
the initial firmness and ended five paise lower at 47.94/95
against the dollar Thursday as the American currency recovered
overseas.

The US dollar had touched a three-week low against the
euro in the New York markets on Wednesday but staged a smart
recovery in London Thursday afternoon.

In fairly active trade, the domestic currency resumed
higher at 47.80/81 a dollar against its last close of 47.89/90
and later moved in the range of 47.72 and 48.03 in step with
volatile trade at the Indian bourses during the day.

Dealers at the Interbank Foreign Exchange market said the
market witnessed unexpected dollar demand in afternoon trade
as the US currency staged a smart recovery in London in early
trade.

The rupee, however, was well supported by steady capital
inflows into equity. Foreign institutional investors bought
shares worth USD 81.80 million in the last two days.

The Indian benchmark Sensex Thursday ended virtually flat
after moving in a wide range due to sustained volatility.

Meanwhile, global oil prices fell to USD 68.10 a barrel
in Asian trade.

Meanwhile, the Reserve Bank of India fixed the reference
rate for the US dollar at Rs 47.79 and for the euro at Rs
67.47.

The rupee premiums on the forward dollar declined on
fresh receiving from exporters.

The benchmark six-month forward dollar premium payable in
December ended at 59-1/2-61-1/2 paise, down from 62-1/2-64-1/2
paise on Wednesday, and the far-forwards maturing in June also
finished lower at 107-1/2-109-1/2 paise from 114-116 paise
previously.

In cross-currency trade, the Indian rupee advanced
further against the pound sterling but declined against the
euro and Japanese yen.

The domestic currency firmed further against the pound
sterling to end at Rs 78.55/57 from the overnight closing
level of Rs 78.70/72 while it fell against the european
currency to Rs 67.41/43 from Rs 67.31/33 previously.

The Indian rupee also slipped against the Japanese yen
to Rs 49.60/62 per 100 yen from Rs 49.44/46 on Wednesday. PTI
RSU
rai
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