Rupee extends gains to end at 42.87/88 per USD

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Mumbai, July 11 (UNI) Delinking itself from the stock market sentiments, Rupee today furthered the gains and closed at 42.87/88 per US Dollar, appreciating about 12 paise from its previous close of 42.99/43.00 in a volatile trading session.

The partially convertible Indian currency resumed the day on a firm note and touched an intraday high of 42.71 per dollar on strong supply of dollars in the forex market but later on it came off as the global crude oil prices saored sharply over USD 144 per barrel, triggering dollar demand from oil companies. However, it closed firm in late trade despite the sensex plunging sharply by 3.28 per cent, dealers said.

''Rupee strenthened aginst the greenback as there was enough supply of dollars, especially from foreign banks, to feed the increased demands,'' a senior dealer with a leading private sector bank said.

He said the unwinding of non deliverable funds by the traders, bought in dollars from the Singapore market that were sold in local market, also helping the Rupee to appreciate.

''The local unit came of from its high in late trade due to high oil prices and falling stock market,'' he added.

However, RBI today fixed the reference rate for US Dollar much lower at Rs.42.72, down by 44 paise from the previous rate of Rs 43.16 per unit.

The six-month and annualised forward premium was quoted higher at 5.19 (4.68) per cent and 4.52 (4.10)) per cent, respectively, on sustained demand of dollars in the currency market.

Rupee ended the day weaker at 67.69/70 (67.45) per unit against the Euro. However, it closed stronger at 84.71/72 (84.82) per unit against the Pound Sterling, while Rupee ended at 40.22 (40.04) per hundred units against the Japanese Yen.

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