The Indian currency edged higher against the greenback after the government eased overseas borrowing rules for local firms, increased the limits on foreign investment in domestic bonds, as global crude prices softened further, dealers said. After opening firm at 42.50/51 per dollar, rupee traded in a range band between 42.43/44 and 42.61/62, before ending firm in late trade following the trend in Indian equity market.
Sensex today ended up on positive sentiments after the government reported a better than expected GDP growth for the last fiscal. However, annual inflation touched 8.1 per cent for the week ended May 17 against 7.82 per cent in the previous week.
Reserve Bank of India (RBI) today fixed the reference rate for US Dollar at Rs 42.59 per unit, 18 paise lower from the previous day's level of Rs 42.77 per USD.
The six-month premium was quoted lower at 2.29 (2.60) per cent and annualised premium closed at 1.76 (1.90) per cent.
Rupee ended the day firm at 65.78 (66.57) per unit against Euro. It closed at 83.69 (84.55) per unit against the Pound Sterling and ended firm at 40.14 (40.65) per hundred units against the Japanese Yen.