Rupee gains 15 paise against USD on firm global cues

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Mumbai, Aug 6 (UNI) Extending previous gains, the Rupee today further appreciated by fifteen paise to close at 42.08/09 per US Dollar on positive global cues.

The Indian unit hit an intraday high at 41.91 per dollar, gaining 32 paise form its previous close of 42.23/24 per dollar, as firm stock market in early trade raised hopes for an upturn in foreign fund inflows and lower global crude prices eased concerns of a widening trade deficit, dealers said.

''The rupee surged at a higher level in early trade as yesterday's fall in oil prices eased the dollar demand in the currency market, but when oil started rising towards USD 120 per barrel, banks started covering their short dollar positions that pushed slightly down the local unit in late trade,'' a senior dealer with a private bank said.

Oil moved marginally higher at USD 119.5 per barrel today, recovering from three-month lows triggered by concerns about weakening demand from a global economic slowdown.

Menwhile, Indian brouses shed their early gains and came off from day's higher levels to close with marginal gap in the last one hour.

Trading in the first half of the session also boosted sentiment for the rupee, but later when it came off the day's high, banks started covering short dollar positions, dealers opined.

The Reserve Bank of India (RBI) today fixed the reference rate for US dollar at Rs 42.00 per unit, down by 28 paise, against yesterday's rate of Rs 42.28 per dollar.

The six-month and annualised forward premium was quoted higher at 4.53 (3.97) per cent and 3.61 (3.26) per cent, respectively.

Rupee ended the day stronger at 65.15 (65.44) per unit against the Euro. It closed at 82.26 (82.59) per unit against the Pound Sterling. Rupee ended at 38.75 (39.18) per hundred units against the Japanese Yen.

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