Rupee gains five paise against USD

Mumbai, Feb 26; The Rupee today climbed up by another five paise against the US Dollar to close at 39.91/92 from its previous close of 39.96/97 on positive sentiments in the stock market. After making a firm start in early trade, the partially convertible Indian currency moved in a close range band between 39.9050 and 39.9450 against the greenback on firm sentiments in the local equity market, before closing firm in a fairly active interbank foreign exchange (Forex) market, dealers said.

Last week, rupee had hit a five month low of 40.20 per dollar on the account of excess demand by exporters and foreign banks, while there was shortage of supply. Dealers maintianed that the rupee is likely to remain rangebound between 39.90 and 40.05 per dollar in the future sessions in the backdrop of Union Budged ahead this week.

Meanwhile, the six month premium was quoted higher at 0.82 (0.24) per cent and annualised premium closed at 0.80 (0.50) per cent and the Reserve Bank of India today fixed the reference rate for the US dollar at Rs 39.91.

The Indian unit ended weaker at 59.32 (59.09/10) against the Euro. Rupee closed weaker at 78.70 (78.40/41) per unit against the Pound Sterling. It ended at 36.95 (37.01/02) per hundred units against the Japanese Yen.

UNI