Rupee inches up by nearly ten paise against USD

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Mumbai, Feb 25: The Rupee today inched ahead by nearly ten paise against the US Dollar to close at 39.96/97 as compared to its previous close of 40.05/06 on firm sentiments on the Indian bourses. The partially convertible Indian currency moved in a range band between 39.96 and 40.07 per dollar, tracking the moves in local equity market, before it ended on firm note in a fairly active interbank foreign exchange (Forex) market, dealers said.

Dealers expect that the local unit will remain in the same range against the greenback this week, on the hopes of relatively less volume trade as investor might wait for the Union Budget for FY09, schduled to be presented this Friday. Last week, rupee had hit the five month low of 40.20 per dollar on the account of excess demand by the exporters and foreign banks, while there was shortage of supply. However, this week would not have such conditions and moreover the rupee will be range bound between 39.90 and 40.05 per dollar, dealers added.

Meanwhile, the six month premium was quoted at 0.24 (0.02) per cent and annualised premium was closed at 0.50 (0.28) per cent and the Reserve Bank of India today fixed the reference rate for the US dollar at Rs 40.05.

The Indian unit ended high at 59.09/10 (59.30/32) against the Euro. Rupee closed strong at 78.40/41 (78.66/68) per unit against the Pound Sterling. It ended at 37.01/02 (37.36/38) per hundred units against the Japanese Yen.

UNI

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