Rupee remains stable against dollar

MUMBAI: In a lacklustre trading, the rupee on Thursday ended flat for the second straight day at 44.31/32 against the US currency despite firm dollar overseas and steep fall in local equities. 

At the Interbank Foreign Exchange (Forex) market, the domestic unit opened better at 44.25/27 a dollar from its previous close of 44.30/31. 

It immediately touched a high of 44.24 on mild dollar selling by exporters and some banks amid sustained capital inflows. Foreign Institutional Investors (FIIs) infused a record USD 28.66 billion in 2010 till November 10. 

However, stronger dollar overseas and steep fall in local equities weighed on the rupee in later part of the day and it fell back to a low of 44.3450 before concluding at 44.31/32. 

The dollar index, consisting six major currencies, was up by 0.22 in afternoon in European market. 

The BSE benchmark Sensex on Thursday ended sharply lower by 286.62 points or 1.37 per cent. 

Meanwhile, food inflation fell to 12.30 per cent for the week ended October 30, from 12.85 per cent in the previous week. 

Global crude oil was trading 25-month high above USD 88 a barrel in London today as crude inventories unexpectedly fell in the US, analysts said. 

The rupee premium for the forward dollar closed steady to easy on stray receivings by exporters. The benchmark six-month forward dollar premium payable in April slipped to 136-137-1/2 from 137-139 paise on Wednesday while far-forward contracts maturing in October held steady at its overnight level of 241-243 paise. 

The Reserve Bank of India has fixed the reference rate for the dollar at Rs 44.25 and the euro at Rs 60.96. 

In cross-currency trade, the domestic currency fell back against the pound sterling, the Japanese yen and the euro. 

The rupee reacted downwards to Rs 71.45/47 against the pound sterling from Wednesday's close of Rs 71.17/19 and also declined to Rs 60.81/83 per euro from Rs 61.04/06 previously. 

It too softened against the yen to Rs 53.92/94 per 100 yen from its last close of Rs 53.89/91.