Rupee gains ten paise against US Dollar

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Mumbai Dec 3 (UNI) The Rupee today gained more than ten paise to close at 39.49/50 against the US Dollar as compared to previous close of 39.61/62 per dollar on fresh foreign fund inflows in the equity market.

The partially convertible Indian Rupee started almost steady at 39.62/63 per dollar amid volatile trade in inter bank foreign exchange (Forex) market. Later, it gained strength on fresh inflows through Foreign Institutionalised Investors (FIIs) in the local equity market. Rupee traded in a wide range of 39.49 and 39.65 per dollar during the day trade, dealers said.

Dealers opined that Rupee may hover around 39.50 per dollar in the future sessions as the government has expressed its concern over appreciation of the Indian Unit recently and was planning to introduce some measures to prevent the inflow of 'dirty money'.

''Moreover, the central bank is also cautious about the rupee apreciation against greenback, which may continue its suspected intervention,'' said a senior dealer with a leading private bank.

Further, the suspected cut on key rates by the US Federal Reserve next week may turn in foreign fund inflows in the Asian market and this is expected to boost up the local unit, he added.

The six-month forward premium closed low at 1.08 (1.45) per cent, while annualized premium ended marginally lower at 0.91 (1.20) per cent. Meanwhile, the RBI today fixed the reference rate at Rs 39.56 per US Dollar. The reference rate was up by 11 paise as compared to the Friday's rate of Rs 39.67 per USD.

The Rupee today traded firm against other major world currencies. The Indian unit ended at 57.76/77 (58.53) against the Euro. It closed at 81.37.38 (81.98) per unit against Pound Sterling, while against the Japanese Yen, the Rupee ended at 35.70/71 (35.83) per hundred units.


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