Rupee recovers by 19 paise vs dollar on firm equity markets

Mumbai, Mar 18 (PTI) A smart rise in equity markets todayamid fresh capital inflows helped the rupee to recover by 19paise to close at more than a two-week high of 51.30/31against the greenback. In fairly active trade at the Interbank Foreign Exchange(Forex) market, the domestic currency opened strong at51.40/42 a dollar from its previous close of 51.49/51. It later moved in a range of 51.49 and 51.27 beforeconcluding the day at 51.30/31 per dollar. Yesterday, therupee was down by nine paise. The Indian benchmark Sensex today pared early sharp gainsbut still closed up by nearly 113 points or 1.27 per cent,after yesterday' & chr(39) & 's fall of nearly 80 points. Most of the Asian indices also exhibited firm trends atclose today while European markets also resumed better. According to provisional data, foreign institutionalinvestors (FIIs) were net buyers on March 17, which alsosupported the rupee rise. But according to analysts, the rise in the rupee mightcap due to a firm dollar overseas and some demand from oilcompanies as the global crude oil prices were trading over USD48 a barrel in Asian trade today. The RBI, however, fixed the reference rate for the USdollar at Rs 51.35 and for the euro at Rs 66.99. The rupee premiums on the forward dollar ended sharplyhigh on sustained paying pressure from banks and corporates. The benchmark six-month forward dollar premium payable inAugust ended up at 92-94 paise from 76-1/2-78-1/2 paise onTuesday and the far-forwards maturing in February also closedstrong at 143-145 paise from 121-123 paise previously. In cross-currency trade, the domestic currency improvedfurther against the pound sterling and the Japanese yen whilemoved down against the euro. The rupee rallied against the pound sterling to end theday at Rs 71.28/30 from yesterday' & chr(39) & 's close of Rs 72.21/23 andalso strengthened against the Japanese yen to Rs 52.01/03 per100 yen from the last close of Rs 52.17/19. However, it softened against the euro to Rs 66.89/91 fromthe previous close of Rs 66.80/82. PTI