Rupee strenghtens, trades at 40.91 against USD

Mumbai, May 4: The Rupee strengthened past 41 per dollar today even as it neared the recent nine-year high.

The domestic unit today registered an intra-day high of 40.91 against the USD against the previous close of 41.10/11 on Thursday.

The Rupee had hit 40.60 last week, its highest since May 1998.

The central bank bought USD 19.7 billion in four months to end February in a bid to thwart the rupee's rise, dealers said.

Firm inflation is preventing the central bank from aggressively intervening; paving way to speculations that the Indian currency is going to strengthen in the near term, they added.

The Rupee has gained about 15 per cent since hitting a three-year low last July. The rupee is overvalued by 15 per cent compared to about 10 per cent, a month ago.

UNI