Mumbai, Jan 4 (UNI) The Rupee gained strength against the US Dollar to close at 39.34/35 per dollar, dearer by six paise from its previous close of 39.40/41 on strong sentiments in the Indian equity market today.
The partially convertible Indian currency today showed tendency to move towards all-time high of 39.16 per dollar as there was huge inflow in the local equity market. It traded in a wide range band of 39.29 and 39.37 per dollar, before ending frim against the US unit in an active inter bank foreign exchange (Forex) market, tracking the movements in the Indian equity market. Foreign Bank were in selling mode, traders said.
''There is a strong posibility that the local unit would pass over the all time high level, if the present trend continues in the future sessions,'' a senior dealer with a leading private bank said.
''Though the Reserve Bank of India's (RBI's) suspected intervention would support the rupee. strong cues in the Indian market ahead would further boost the local unit,'' he added.
The six-month forward premium closed higher at 1.79 (1.53) per cent, while annualized premium ended higher at 1.37 (1.21) per cent.
Meanwhile, the apex bank today fixed the reference rate at Rs 39.32 per dollar. The reference rate was up by 13 paise as compared to its yesterday's rate of Rs 39.45 per dollar.
The Indian unit ended firm at 57.85/86 (58.15/16) against the Euro. It closed almost firm at 77.69/70 (77.84/85) per unit against the Pound Sterling, against Japanese Yen, the Rupee ended at 35.93/94 (36.33/34) per hundred units.
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