Rupee gains six paise amid high volatility

Mumbai, Dec 13: The Rupee today climbed up by about six paise to close at 39.34/35 against the US Dollar from its previous close of 39.395/405 amid high volatility in the Forex market.

The partially convertible Indian unit recovered from early lows against the US dollar during morning trade. The Rupee traded in a wide range band of 39.33 to 39.42 per Dollar in Inter-bank Foreign Exchange (Forex) market amid high volatility during the day trade, dealers said. In a lacklustre activity at the Forex market, the local unit resumed weak at 39.40/42 per dollar but recovered to 39.33 a dollar in late morning deals on the back of firm stock market.

''However, it was supported by the suspected intevention by the Central Bank soon after at the level of 39.35 per dollar but in the late trading sessions the rupee further strengthened,'' a senior dealer with a leading private bank said.

The six-month forward premium closed high at 1.97 (1.95) per cent, while annualized premium ended at 1.45 (1.40) per cent.

Meanwhile, the Reserve Bank of India (RBI) today fixed the reference rate at Rs 39.35 per US Dollar. The reference rate was up by two paise compared to previous day's rate of Rs 39.37 per USD.

A mixed trend was observed in the Rupee's trade against other major world currencies. The Indian unit ended weak at 57.96/97 (57.80) against the Euro, while it closed firm at 79.59/60 (80.46) per unit against Pound Sterling. Against the Japanese Yen, it ended at 34.81/82 (35.25) per hundred units.

UNI