Rupee surrenders early gains, ends down 4 paisa at 55.10 on dollar demand

The Reserve Bank will intervene in the forex market only to curb excessive volatility in exchange rate but stated there is no target set for rupee, deputy governor Subir Gokarn said yesterday.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "The rupee reversed the initial gains on weak equity markets also weighed by the oil importers demand. The dollar index retreated from its high as intensifying hopes of release of the financial aid to Greece by the Euro group ministers lead to extension of gains in the single currency."

"The upcoming Winter session of Parliament is under focus and fears of no confidence motion against the government has dented sentiments....," he added.

The premium for the forward dollar ended steady to easy on fresh stray receipts by exporters.

The benchmark six-month forward dollar premium payable in April softened to 143-145 paise from Monday's close of 144-1/2-146-1/2 paise.

However, far-forward contracts maturing in October ended stable at its overnight closing level of 283-285 paise.

The RBI has fixed the reference rate for the US dollar at 54.9100 and for euro at 70.2380.

The rupee remained sluggish against the pound sterling to 87.75 from previous close of 87.58 and also declined further to 70.56 per euro from 70.32.