Rupee ends flat at 44.43/44 against dollar

Rupee ended flat at 44.43/44 against the US dollar after a volatile trade amid the US currency rising in the overseas markets, and weakness in domestic stock markets.

At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 44.47/48.

Later, it bounced back to a high of 44.38 before settling at 44.43/44, one paise down from its previous close.

In the last four trading sessions in a row, the rupee had gained 61 paise or 1.35 per cent.

Renewed dollar demand from banks and some corporates in view of the firming dollar in overseas markets mainly affected the rupee value against the dollar, a forex dealer said.

The early fall in the rupee due to fresh dollar demand from importers and corporates amidst a firm US dollar overseas was wiped out after the mid-session following late dollar selling by exporters and sustained heavy capital inflows, he added.

Alpari Financial Services ( India) CEO Pramit Brahmbhatt said, "Rupee recovered its initial losses after mid-session but ended a tad lower. Heavy foreign funds inflow limited the rupee fall."

In the Asian market the US currency gained against the euro and yen today as the demand of the Greenback as an alternative investment option soared as concerns over a possible rate hike by China dampened the investor sentiment.

The dollar index, gauging of six major currencies, was up by 0.25 per cent, with investors still wary of Europe's sovereign debt problems while New York crude oil was trading near USD 95.5 a barrel in European market on Tuesday.