Forex Update: Rupee closes 4 paise higher against dollar at 61.51 on fresh dollar selling

The rupee ended higher by four paise to 61.51 against the American currency on fresh selling of dollars by banks and exporters in view of persistent foreign capital inflows into equity market.

Banks and exporters preferred to reduce their dollar position on expectation of further foreign capital inflows in view of rising trend in the equity market.

The Indian benchmark Sensex rose further by 98.84 points or 0.35 per cent to close at 28,008.90 after touching an lifetime high of 28,126.48.

The rupee resumed higher at 61.53 per dollar as against the Tuesday's closing level of 61.55 at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 61.46 per dollar and 61.56 per dollar before ending at 61.51 per dollar, showing a gain of 4 paise or 0.07 per cent.

In London, the yen pulled back from a seven-year low against the dollar in the early trade, after comments from a Japanese government official cooled speculation that Prime Minister Shinzo Abe will call a December election.

Mr. Pramit Brahmbhatt, Veracity Group CEO said," Rupee continues to trade range bound and ended near Tuesday's close at 61.51. Rupee is expected to appreciate further taking cues from the strong local equities which is trading all time high but importers will enter in the market to grab the advantage of appreciated Rupee which will keep Rupee under pressure".

In the forwards market, premium advanced further on sustained paying pressure from banks and corporates.

The benchmark six-month premium payable in April rose to 218-220 paise from previous close of 216.5-218.5 paise.

Far-forward contracts maturing in October, 2015 also moved up to 434.5-436.5 paise from 431-433 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.4785 and for the Euro at 76.7866.

The rupee firmed up further against the pound to 97.55 from previous closing level of 97.64 but slipped to 76.74 per euro from 76.45 per euro previously.

It fell to 53.41 per 100 Japanese yen from Tuesday's level of 53.14.