Rupee ends weaker at 40.85/86 per dollar

Mumbai, May 17: A dull market, where less movements were observed by dealers today, pushed the rupee down to 40.85/86 per dollar from the previous close of 40.78/79.

The country's current account defficiency rate stands high on account of high import rates and dwindling exports, which may claim an impact on the domestic unit in the days ahead, said a leading leader.

In early day trade, the domestic unit opened at 40.82/83 per dollar and later went up to a day's high of 40.78/79 before closing at 40.85/86 in evening.

A weak US dollar and high oil buying spree coupled with continued capital inflows, had an impact on the rupee today, said dealers. The rupee had hit a nine-year high of 40.53 in the recent past.

The forward premia today showed stronger as the six-month and 12-month premia ended at 4.50 (4.19) and 4.00 (3.82) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 40.84 per US dollar same as yesterday's rate per USD, RBI said.

The spot rupee stood weaker against major world currencies.

Against Euro, the rupee closed weaker at 55.25 ( 55.10) per unit, against Pound it finished weaker at 80.80 (80.40) per unit and the Yen was also quoted higher at 33.75 (33.67) per 100 units each, dealers added.

UNI