In general, due to quiet and range-bound trade at the interbank foreign exchange (forex) market the rupee closed at Rs 46.68/69 per dollar, another three paise decline from Tuesday's finish of Rs 46.65/66. It had depreciated by five paise in the earlier two sessions due to steady dollar demand from operators.

Opening around Rs 46.67/68, the rupee dipped to early intraday lows of Rs 46.71/72, before partly bouncing back to Rs 46.68/69 at the close. Sustained dollar demand from corporates and importers stepped up the pressure on the rupee, despite favourable news of the good response to SBI's, India Millennium Deposit (IMD) scheme fetching $5.2 billion, far in excess of market expectations.

While the deposit plan's dollar inflows will keep the rupee stable in the short-term, more immediate dollar demand from importers was weakening the Indian currency, dealers said. `The day has been a quiet one, although the rupee remains under pressure due to genuine demand from importers,' a dealer commented. Marketmen were of the general opinion that the IMD inflows had already been factored by the market. Meanwhile, the Reserve Bank of India (RBI) fixed the reference rate at Rs 46.69 per dollar from Tuesday's fix of Rs 46.65. Traders expect the rupee to rule in a tight range of Rs 46.65 and Rs 46.75 tomorrow.

In cross currency trades, the rupee continued to forge ahead against Euro and rallied further against British Sterling. The Indian unit ended sharply higher against the single European currency at Rs 40.06/08 per euro from Tuesday's close of Rs 40.21/23 after opening around Rs 40.24/26. Opening mildly lower against sterling at Rs 66.64/66 per pound from Rs 66.60/62, the rupee later rallied smartly to end higher at Rs 66.43/45 per pound.

The futures market was moderately active and forward dollar premiums rose on renewed paying pressure, as importers covered their forward exposures.Tightened liquidity in the domestic money market also exerted upward pressure on premiums, dealers said.

(PTI)