Re bounces smartly against dollar

The rupee today bounced back smartly against the US currency, helped by strong bunched up dollar supplies even as sporadic month-end dollar demand from oil companies contained gains following a fresh splurge in global crude prices.

In fairly active two-way trade at the interbank foreign exchange (forex) market, the rupee closed at Rs 43.7550/7650 per dollar, sharply higher from last Thursday's close of Rs 43.81/82 but off early highs of Rs 43.7350/7450. It opened distinctly firm at Rs 43.70/72 per dollar.

The forex market was closed last friday, January 21 on account of "bakri-id".

Heaped up dollar supplies accumulated over the long holiday weekend amidst a relatively weak dollar overseas gave the rupee strong underlying support even as a fresh surge in global oil prices weighed on its value, dealers said.

Oil prices soared to over 49 dollars a barrel due to severe winter conditions and persistent violence in Iraq.

The rupee hit an early peak of 43.7350/7450, but dollar demand from offshore oil majors to meet the customary month-end commitments partly contained gains, a forex dealer said, adding "month-end pressures tomorrow ahead of the republic day holiday on wednesday may prevent further sharp rupee gains."

Reserve Bank of India (RBI) fixed the reference rate for the US currency at Rs 43.75 per dollar and the single European unit at Rs 57.12 per euro.