Rupee ends flat at 39.41/42 against USD

Mumbai, Dec 31 (UNI) The Rupee today ended flat against the US Dollar on the last day of 2007, at 39.41/42 per dollar.

The partially convertible Indian currency traded in tight range band of 39.39 and 39.42 per dollar on subdued year-end sessions, resulting in dull activities in the inter bank foreign exchange (Forex) market, dealers said.

''The local unit was expected today to ride on gains as there was good inflows in the Indian equity market in the early session, but it was capped by the suspected intervention by the Reserve Bank of India (RBI),'' a senior dealer with a leadig private bank said.

Investment by the Foreign Institutional Investors was almost USD 17 billion in Indian stocks and this has been a key factor for Rupee's appreciation by 12 percent this year, he added.

The six-month forward premium closed marginally lower at 1.62 (1.69) per cent, while annualized premium ended at 1.24 (1.27)per cent.

Meanwhile, the RBI today fixed the reference rate at Rs 39.41 per dollar, up by 3 paise as compared to its previous close. The Rupee traded weak against other major world currencies today.

The Indian unit ended weak at 57.96/98 (57.86/87) against the Euro, while it closed at 78.91/92 (78.71/72) per unit against Pound Sterling. Against Japanese Yen, rupee ended at 35.13/14 (34.88/89) per hundred units.

UNI