Rupee ends firm about ten paise higher against USD

Mumbai Dec 7: The Rupee today gained about ten paise to close at 39.40/41 against the US Dollar from the previous close of 39.49/50 on fresh capital inflows.

The partially convertible Indian Unit kicked off firm at 39.43/44 and fluctuated in a range of 39.38 and 39.46 per dollar on fresh sellings of dollars by foreign banks and buyings by the nationalised banks amid high volatility in inter bank foreign exchange (Forex) market, dealers said.

Later, the suspected intervention by the Reserve Bank of India (RBI) prevented the upward move of local unit against dollar to around 39.40/43, dealers added.

The six-month forward premium closed higher at 1.54 (1.45) per cent, while annualized premium ended up 1.18 (1.13) per cent.

Meanwhile, RBI today fixed the reference rate at Rs 39.41 per US Dollar. The reference rate was up by 6 paise as compared to the previous day's rate of Rs 39.47 per USD, The Rupee today traded in a mix against other major world currencies. The Indian unit ended weak at 57.51/52 (57.36/37) against the Euro. Rupee closed weaker at 79.84/85 (79.71/72) per unit against Pound Sterling. While, against the Japanese Yen, it ended firm at 35.23/24 (35.51/52) per hundred units .

UNI