Rupee gains twenty-two paise, ends at 40,50/51 per USD

Mumbai, Mar 18: The Rupee today climbed nearly twentytwo paise to close at 40.50/51 against the US Dollar from its previous close of 40.7250/7350, despite the Indian equity market ending almost flat.

The partially convertible Indian curency traded in the range band between 40.49 and 40.69 per dollar tracking the bouts in local equity market, dealers said.

The local unit yesterday fell the most in two weeks after the US Federal Reserve cut its discount interest rate. Further, the movement of local unit will depend how the Fed deals ahead with the interest rate to support the liquidity in US. It is being expected that Fed cut might be of atleast 75 basis points, dealers added.

Meanwhile, the six-month premium was quoted higher at 1.73 (1.47) per cent and annualised premium closed at 1.23 (1.11) per cent. The Reserve Bank of India fixed the reference rate for the US dollar at Rs 40.62.

The Rupee closed firm today at 63.64/65 (64.23/24) against the Euro. It ended at 81.33/34 (81.62/63) per unit against the Pound Sterling and closed at 41.21/22 (42.07/08) per hundred units against the Japanese Yen.

UNI