Rupee trades at 40.77/78 against USD

Mumbai, May 16: The rupee today traded stronger against the dollar at 40.77/78 in the early trade, drawing support on strong capital inflows.

The recovery of the domestic unit to its recent peak points was supported by the investor trend, who sold dollars to generate funds to tide over a cash squeeze in the money market, said dealers.

Call rates were trading at 9-9.2 per cent today, reflecting tight money market conditions and spurred demand for the local unit.

The rupee had closed weaker yesterday at 40.96/97.

UNI