Mumbai, June 12 (UNI) The Rupee today closed on a firm note at 42.82/83 per US Dollar, appreciating by four paise from its previous close of 42.86/87 on positive sentiments in the stock market.
The Indian rupee traded in a range band of 42.78 and 42.87 per dollar and settled firm in late trade following the positive sentiments in the stock market, which recovered its early loss to end the day in the green, dealers said.
Dealers maintained that the local unit showed firmness against the greenback as the Reserve Bank of India had hiked repo rate by 25 basis points yesterday in order to moderate inflation. It has heightened the possibilities of interest rate hike by Indian banks.
L&T was seen buying dollars in the currency market and the suspected RBI intervention also held the rupee at stronger side, a senior dealer with a leading private sector bank said.
Reserve Bank of India (RBI) today fixed the reference rate for US Dollar flat at Rs 42.81 per unit, eight paise down as compared to previous rate Rs 42.89 per unit.
The six-month premium was quoted higher at 2.87 (2.11) per cent and annualised premium closed at 2.41 (1.85) per cent.
Meanwhile, Rupee ended the day firm at 66.03/04 (66.42/44) per unit against Euro. It closed at 83.43/44 (83.88/89) per unit against the Pound Sterling and ended firm at 39.75/76 (39.90/91) per hundred units against the Japanese Yen.
UNI PP OBB AG1817