Rupee ends higher by another 12 paise against dollar

The rupee today strengthened by another 12 paise to end at 46.83/84 against the US dollar on sustained selling of the US currency by exporters and banks, amid firm equity markets.

The rupee resumed lower at 47.03/04 per dollar, but recovered immediately to quote 21 paise higher at 46.74/76 in early trade. Later in the day, moving in line with equity markets, it pared some of the gains before closing 12 paise higher at 46.83/84 per dollar.

Persistent rise in the equity markets mainly boosted the rupee on expectation of inflow of foreign funds, a dealer said.

The benchmark Sensex rose by another 143 points to end above the psychological 17,000 mark at 17,064.95 points.

Industrial output rose much faster than expected at 17.6% in April 2010 from a year earlier on strong consumer demand and government spending.

In London, euro rose today on the back of higher stocks, but the currency struggled to extend its short-covering rally versus the dollar ahead of technical resistance, while options barriers also capped gains.

The rupee premium for the forward dollar edged up on mild paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in November closed slightly better at 66-68 paise from 66-67-1/2 paise on Thursday and far-forward maturing in May also close up at 119-1/2-121-1/2 paise from 118-119-1/2 paise previously.

The Reserve Bank of India fixed the reference rate for dollar at Rs46.82 and for the euro at Rs56.66.

In cross currency trade, the domestic currency declined further against the pound and the euro, while firmed up against the Japanese yen.

The rupee softened against the pound to end at Rs68.57/59 per pound from Thursday's close of Rs68.55/57 and dropped further against the euro to Rs56.81/83 per euro from Rs56.48/50 previously.

It, however, recouped against the yen to Rs51.07/09 per 100 yen from its last close of Rs51.50/52.