The Rupee extended overnight gains against the U S Currency early on Tuesday on a spillover of dollar sales by banks in an otherwise shallow and lacklustre trade at the interbank foreign exchange (forex) market. The Indian unit was quoted at Rs 46.7100/7150 per dollar in late morning deals, higher from Monday`s closing levels of Rs 46.7250/7300. The Rupee opened at Rs 46.71/72. Unwinding of long dollar positions by banks in the absence of adequate demand continued to strengthen the rupee. However, the forex spot trade remained quiet and range-bound due to lack of market-moving factors and in line with the subdued activity in overseas markets, dealers said. Most of the major world markets are witnessing low key activity ahead of the Christmas season and account book closures for the year.
Meanwhile, the rupee continued to garner valuable support from a sustained decline in global oil prices and a rise in forex reserves. The benchmark Brent crude was quoted at $ 25.59 a barrel and the Dubai grade at $ 22.71 today, well below the $ 30 a barrel it was ruling in the recent past. Bureau Report