Rupee ends stronger at 48.70/72 after breaching 49 level

Mumbai, July 9 (PTI) The Indian rupee bounced back after
breaching the crucial 49 level for the first time since May 15
and ended 18 paise stronger at 48.70/72 against the US
currency Thursday on heavy dollar sales by exporters amid
sustained capital outflows.

Exporters heavily sold dollars in afternoon trade as the
American currency and Japanese yen fell while firm European
stocks helped the euro strengthen in early trade at the London
exchange.

Breaching the 49 level against the dollar, the domestic
unit later moved in a range of 48.67 and 49.06 during the day.
It resumed weaker at 48.98/49.00 a dollar from its last close
of 48.88/89 a dollar.

Dealers at the Interbank Foreign Exchange (forex) market
said the rupee rebounded from its intra-day low as exporters
suddenly pressed dollar sales in the second half of day.

Initially, the local unit was under pressure in view of
sustained capital outflows from equity in the last three days.

They said banks that had built up dollar positions in
early trade also sold dollars along with exporters.

The benchmark Sensex Thursday ended flat after moving
erratically in a range of 235 points.

Global oil prices, however, hovered around USD 61 a
barrel during Asian trade.

The Reserve Bank of India, however, fixed the reference
rate for the US dollar at Wednesday's level of Rs 48.92 and
for the euro at Rs 68.16.

The rupee premiums on the forward dollar eased on fresh
receivings by exporters.

The benchmark six-month forward dollar premium payable in
December ended at 56-1/2-58 paise, down from 57-59 paise on
Wednesday, and the far-forwards maturing in June also finished
lower at 107-109 paise from to 108-110 paise previously.

In cross-currency trade, the rupee weakened against the
pound and the Japanese yen but recovered moderately against
the euro.

The domestic currency dropped against the pound to end at
Rs 79.06/08 against its last close of Rs 78.64/66 and also
fell sharply against the yen to Rs 52.42/44 per 100 yen from
its previous close of Rs 51.80/82 per 100 yen.

The rupee, however, turned higher against the euro to end
at Rs 67.97/99 from its previous close of Rs 68.05/07. PTI JCG
RAI