Rupee returns strong; ends at 40.87/88 against USD

Mumbai, May 14 (UNI) The spot Rupee today staged a major comeback to close the trade at 40.87/88 per dollar, rising sharply from the previous close of 41.26.

Investors today accumulated the Indian currency, spurred by firm overnight loan rates and gains in high-yielding Asian currencies against the dollar, which was spotted by dealers as the reason for the strengthening of domestic unit.

Sentiments on the Rupee were also boosted by the Friday data that showed a 12.9 per cent rise in India's industrial output in March, much above a forecast for 10.4 per cent, dealers opined.

The six-month and 12-month forward premia ended at 4.90 and 4.24 respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 40.93 per US dollar, up by 41 paise from its Friday's rate of Rs 41.34 per USD, RBI said.

Against Euro, the Rupee closed today at 55.39/40 per unit each, against Pound it finished at 80.95/96 per unit each and the Yen was quoted at 33.96 per 100 units each, dealers added.

UNI