Rupee ends flat at 39.30/31 per USD

Mumbai, Nov 8 (UNI) The Rupee today closed flat at 39.30/31 per US Dollar on suspected intervention by the Reserve Bank.

After the Reserve Bank of India (RBI) revised the ceiling for outstandings under the Market Stabilisation Scheme (MSS) for 2007-08 to Rs 2,50,000 crore yesterday, the partially convertible Indian unit today started weak at 39.36/38 per dollar as investors were cautious about the RBI's move, dealers said.

The Local unit traded in a range of 39.30 and 39.38 per dollar during the day trade on global cues. Moreover, the inter bank foreign exchange (Forex) market witnessed less activities due to fastive holidays, dealers added.

Dealers maintained that in further sessions, after the Diwali festival, the Rupee is expected to have a tendency of appreciation against US currency as the global markets are supposed to be volatile.

The six-month forward premium closed marginally at 1.40 (1.66) per cent, while annualised premium ended at 1.15 (1.32) per cent.

Meanwhile, RBI today fixed the reference rate at Rs 39.34 per US Dollar. The reference rate was down by seven paise as compared to yesterday's rate of Rs 39.27 per USD.

The Rupee traded weaker against other major world currencies today. The Indian unit ended weak at 57.66 (57.60) against the Euro. Against Pound Sterling, the rupee closed weak at 82.83 (82.50) per unit and against the Japanese Yen, the Rupee ended at 34.76 (34.80) per hundred units.

UNI