Rupee continues to be stronger; closes at 41.16/17

Mumbai, Apr 24: The spot Rupee today appreciated by 50 paise toclose at 41.16/17, registering a fresh nine year high against the USDas compared to the previous close of 41.67/68.

In the afternoon trade, Rupee almost touched 41.05 per dollar onthe back of robust Foreign institutional investment inflows into localstock markets. Later, the domestic unit slipped down to 41.70 beforeending at 41.16/17.

Traders said they were relieved that Central bank did not tightencapital controls. Rupee was hardly affected on speculation thatimporters were buying dollars to meet month-end needs.

Earlier, in the morning session, the investors were seen fearfulof further tightening of norms for external commercial borrowings(ECBs) by the Central bank which didn't take place.

The Central Bank caps external commercial borrowings at USD22billion per financial year and companies and banks can bring in 500million without asking permission.

The Rupee is up about six percent this year, the best performing Asian currency against the dollar.

The spot Rupee has risen about four percent this month, and istrading 13 percent above a three-year low of 47.04 hit in last July,dealers said.

The forward premia levels, although opened at higher margins, thelevels came off later and ended 15-16 paise weaker in the session.

Six-month and Twelve-month forward premia closed at 5.93(6.7) and 4.73(5.02), respectively.

The Reserve Bank of India (RBI) today fixed the reference rate atRs 41.64 per US dollar, up by three paise from its yesterday's rate ofRs 41.67 per USD, according to an RBI spokesperson here.

Against the Euro, the Rupee closed at 55.39 per unit each, Poundfinished at 81.50 per unit each and Yen was quoted at 34.30 per 100units, brokers said.

UNI