Rupee ends stronger at 40.55/56 against USD

Mumbai, May 23 (UNI) The Rupee closed stronger today at 40.55/56, almost nearing a recent nine-year peak of 40.51, as compared to the previous close of 40.57/58.

Traders spotted the Reserve Bank intervention on Rupee in the morning session which is believed to have come as part of RBI's efforts to stem the gains of the Indian unit.

Rupee resumed the day's trade at 40.57 today and went up to a high of 40.54 in the forenoon segment, but later skidded in the afternoon session to mark the day's low of 40.62/63 against the Dollar.

A weak Dollar and strong capital inflows may keep the local unit as the strongest Asian currency in the ensuing sessions as well, dealers opined.

The forward premia shot up today as the six month premia were quoted at 4.36 per cent (4.08) while the one year premia ended at 3.78 per cent (3.63).

The Reserve Bank of India today fixed the reference rate at Rs 40.55 per US Dollar up by nine paise as compared to the previous close of 40.64.

The spot Rupee today stood weaker against the major world currencies. Against Euro, the Rupee ended lower at 54.70/71 per unit each (54.20/21), against the Pound, it ended down at 80.47/48 per unit (79.52/53), and against the Yen, it was quoted lower at 33.37 per 100 units each (33.17/18), dealers said.

UNI