Rupee recovers by over 9 paise Vs dollar

In sync with the recovery in the local equity markets, the Indian rupee on Tuesday bounced back by closing higher by nine paise at 48.6350/6450 against the US currency on sustained capital inflows.

The domestic currency drew support from bullish equity market where the benchmark Sens*x shot up by 240.26 points or 1.48 per cent on foreign funds becoming aggressive buyers.

Rise in other Asian currencies also partly aided the rupee sentiment, said dealers and foreign exchange traders.

Meanwhile, the global crude oil was below the USD 69 a barrel in Asian trade.

In lackadaisical trade at the Interbank Foreign Exchange (Forex) market, the domestic unit resumed higher at 48.62/64 a dollar from its last close of 48.73/74 a dollar.

The rupee later moved in a range of 48.55 and 48.69 a dollar.

The Reserve Bank, however, fixed the reference rate for the US dollar at Rs 48.57 and for the euro at Rs 71.06.

Rupee premiums on the forward dollar ended slightly better on stray paying pressure from banks and corporates.

The benchmark six-month forward dollar premium payable in February ended up at 58 - 60 paise from 57-1/2 - 59-1/2 paise on Monday and far-forwards maturing in August also finished higher at 130 - 132 paise from 128 - 130 paise previously.

In cross-currency trade, the local unit improved against the pound and the Japanese yen while declined against the euro.

The rupee shot up against the pound to end at Rs 80.09/11 per euro from Monday's close of Rs 80.58/60 and also moved up against the Japanese Yen to Rs 53.33/35 per 100 yen from Rs 53.65/67 previously.