Rupee recovers by 34 paise at 47.06 against dollar

Mumbai, Nov 4 : The Rupee today appreciated by 34 paise to end firm at 47.06 against the dollar on heavy offers for the greenback by bankers coupled with strong equity markets, traders at the interbank foreign exchange (forex) said here.

The Indian unit resumed firm at 47.25 a dollar and later its movement was range bound between 46.98 and 47.25 in intra day trade.

The Rupee rose further at noon, tracking gains in the local sharemarket, which rallied over 3 percent.

At noon session, the partially convertible rupee was at 47.06/07 per dollar, stronger than its previous close of 47.40/41.

Foreigners have bought more than $14 billion of local equities so far this year, after being sellers of more than USD 13 billion in 2008. The dollar retreated from a one-month high against a currency basket as traders braced for a policy decision from the Federal Reserve, which was seen keeping its promise to keep interest rates low.

The dollar index, a gauge of the U.S. units performance versus six majors, was down 0.4 percent. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 47.1425 respectively, with the total traded volume on the two exchanges at about $2.4 billion.

Six month forward dollar premium recorded a high at 2.90/92 (2.80/82) per cent and one year dollar premium was quoted also high at 2.86/88 (2.84/86).

Rupee today ended higher as major global currencies like Euro closed at 69.58/60 (69.38/40) per unit, while Pound Sterling finished at 77.84/86 (77.18/20) per unit and Yen closed at 51.84/86 (52.54/56) per 100 units, brokers added.

--UNI

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