Rupee closes at 40.66/67 against dollar

Mumbai, May 21: The Rupee today touched a fresh nine year high of 40.51 against the dollar before closing the trade at 40.66/67.

In the early day trade, Rupee scaled fresh heights drawing strengths from strong capital inflows and on the investor belief that the central bank won't check Rupee's gains as China widened the yuan's trading band against the dollar, said dealers.

The currency opened stronger at 40.73/74 today from the previous close of 40.70/71 and registered a days high of 40.51 before coming down in the afternoon session to mark a day's low of 40.74 per dollar. Later it closed at 40.66/67.

The forward premia today declined marginally. The six month forward premia were quoted at 4.03 percent (4.46)and3.61 percent (3.95) respectively.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 40.60 per US dollar, up by thirty paise from its Friday's rate of Rs 40.90 per USD.

The spot Rupee posted weaker against major world currencies.

Against Euro, the Rupee closed down at 54.65/66(54.31) per unit, against Pound it finished lower at 80.06/08(79.42) per unit and the Yen it was ended up at 33.46/48(33.34) per 100 units each, dealers added.

UNI