Rupee ends steady at 39.80/82 per USD

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Mumbai, Oct 1: Rapid intervention from the Reserve Bank moderated Rupee's gains today and blocked the unit at 39.80/82 per US dollar, almost at the same level at which it had settled on Friday.

At the Liquidity Adjustment Facility (LAF) reverse repo window, Reserve Bank today sucked Rs 30,400 crore from the system simultaneously prompting the public sector banks, especially State Bank of India, to buy out dollars to stem the local unit's gains.

The Rupee started off at 39.75/76 per dollar in morning, stronger as against the past close, and went up to the day's high of 39.72 per dollar at one stage but lost its pace as RBI planted hurdles on the unit's path throughout the day. It later ended at a day's low of 39.82 per dollar.

According to senior dealers, the Rupee is undergoing a correction, which may lead to its further dip.

''Rupee is likely to touch 40.20 per dollar in the coming days as strong intervention is visible from the Reserve Bank's side,'' according to Sudharshan Bhatt, Chief Forex Dealer, Corporation Bank.

Forward premia fell subsequently and was quoted at 0.60 (0.77) per cent in six-month contract and 0.85 (0.95) per cent in annualised contract.

Against major currencies, Rupee ended at 56.55 (56.50) per unit against Euro, at 81.32 (81.05) against Pound Sterling, while Japanese Yen was quoted at 34.42 (34.54) per hundred units each.

Reserve Bank of India (RBI) today fixed the reference rate at Rs 39.73 per US Dollar.


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