Rupee closes 18 paise higher against dollar, at 61.43

The Indian rupee ended higher by 18 paise to 61.43 against the American currency after the long weekend holidays on sustained selling of dollars by banks and exporters.

The rupee resumed higher at 61.41 per dollar as against the last Wednesday's closing level of 61.61 per dollar at the Interbank Foreign Exchange (Forex) Market and hovered in a range of 61.3025 per dollar and 61.4700 per dollar before finishing at 61.43 per dollar, showing a rise of 18 paise or 0.29 per cent.

Mr.Pramit Brahmbhatt, Veracity Group CEO said," the rupee appreciated to 61.3025, taking cues from the dollar which is at present is trying to recover from yesterday's fall in the global market. Investors preferred to book profit in the already elevated dollar".

In New York market, US dollar nursed heavy losses on Monday, having suffered its biggest one-day fall in a year as it reversed almost all of its US payrolls-inspired gains.

In the global market today, the dollar was a tad higher against the yen in Asia trade early trade, trimming earlier gains after comments by Japanese Prime Minister Shinzo Abe about the debilitating effects of a weak yen on households and small and mid-sized companies.

Meanwhile, the BSE benchmark Sensex dropped by 296.02 points or 1.11 per cent to finish at 26,271.97.

In forward market, premium ended almost flat in the absence of market-moving factors.

The benchmark six-month premium payable in March closed slightly lower at 234-236 paise as against the last weekend's level of 234.5-236.5 while far-forward contracts maturing in September, 2015 ended stable at 473.5-475.5 paise.

The Reserve Bank of India fixed the reference rate for dollar at 61.3595 and for the euro at 77.4664.

The rupee improved further against the pound to 98.68 from the previous close of 99.72 and also strengthened to 77.37 per euro from 77.56 per euro.

However, it hardened further to 56.60 per 100 yen from 56.05.