Rupee ends marginally up by 1 paise vs dollar

Mumbai: The rupee recovered from initial losses and finished marginally up by one paise at 66.39 per dollar on fag-end selling of the US currency by banks.

The rupee resumed lower at 66.45 per dollar on initial dollar demand against Tuesday's closing level of 66.40 at the Interbank Foreign Exchange Market. It dropped further to 66.47 on month-end dollar demand from importers mainly oil refiners.

However, it recovered from initial losses to 66.37 per dollar before finishing at 66.39, showing gain of one paise or 0.02 per cent.

It hovered in a range of 66.37 per dollar and 66.47 per dollar during the day.

Globally, the US dollar continued to climb against a basket of six currencies in afternoon trade by 0.08 per cent.

However, the dollar was almost unchanged against the yen in Tokyo market. The US currency was also flat against the euro.

Currency trading remained thin in global market with many investors closing their positions ahead of the end of the year.

Oil prices declined in Asia today ahead of the release of data on US crude stockpiles and production.

Prices had been volatile during the holiday-shortened final week of 2015 but remained near multi-year lows in the face of indications a global crude supply glut will continue into next year.

Meanwhile, the benchmark BSE Sensex fell by 119.45 points or 0.46 per cent to close at 25,960.03.

In forward market today, premium for dollar fell further on sustained receiving from exporters.

The benchmark six-month premium payable in May declined to 170.75-172.75 paise from 176-177 paise on Tuesday and far forward November 2016 contract also moved down to 380-382 paise from 386-387 paise.

The RBI fixed the reference rate for the dollar at 66.4243 and for the euro at 72.6018.

In cross-currency trades, the rupee firmed up against the pound sterling to close at 98.38 from previous closing level of 98.56 and recovered against the euro to close at 72.52 as compared to 72.85 per euro.

It also recouped against the Japanese Yen to 55.11 per yen from 55.14 previously.