Rupee ends almost flat as dollar surges on Fed measures

The rupee today ended almost unchanged from its last close against the US dollar, at 46.30/31, after losing a hefty 19 paise in early trade following a sharp rise in dollar value against its main rivals in the overseas markets.

The US Federal Reserve announced an increase in interest rates for short-term loans, the first increase in rates since 2006, after
keeping them at historic low levels to prop up the economy.

The US dollar hit a nine-month high against the euro while up
against a basket of currencies. The index of the dollar against six major currencies was up by 1.1%.

At the interbank foreign exchange (forex) market, the local unit lost 19 paise in intra-day trades at 46.47/48 to a dollar. But it recovered some of the losses on the emergence of dollar buying by banks as well as exporters and  importers for their monthly settlement.

The rupee finally settled the day at 46.30/31, a tad lower than its previous close of 46.28/29.

A fall in the benchmark Sensex for the second straight day too weighed on the rupee. The Sensex ended lower by another 136.21 points or 0.83% while most of the Asian indices too ended in the red.

Meanwhile, global crude oil prices were flat at US $78 a barrel in London today. In cross-currency trade, the domestic currency improved further against the pound and the euro while recovering against the yen.

The rupee shot up further against the pound to end at Rs71.16/18 per pound from Thursday's close of Rs72.18/20 and also moved up against the euro to Rs62.45/47 per euro from Rs62.80/82 previously.

It, however, recouped against the yen to Rs50.36/38 per 100 yen from its last close of Rs50.88/90.

The Reserve Bank of India fixed the reference rate for the dollar at Rs46.47 and for the euro at Rs62.56.

The rupee premium for the forward dollar firmed up on fresh paying pressure from banks and corporations.

The benchmark six-month forward dollar premium payable in July ended higher at 51-52 paise from 46-47 paise on Thursday and far-forward maturing in January also closed up at 105/106
paise from 99-100 paise.