Rupee touches nine-year high; trdaes at 40.27/28 per dollar

Mumbai, May 28: Rupee today marked a fresh nine-year high of 40.27/28 as strong capital inflows continued to boost-up the local unit.

This was the strongest performance of the local unit since May 1998, dealers said.

The domestic unit opened the trade today at 40.54/56 as compared to the previous close of 40.59/60 on Friday. In the morning session, Rupee went upto a day's low of 40.58 as State-run banks bought dollars possibly on behalf of the Reserve Bank of India, traders said.

However, strong capital inflows and enormous dollar sell-outs carried the domestic unit from its recent nine-year high of 40.51 to a fresh high of 40.27/28 per dollar. Later the Indian currency closed the trade at 40.50 per dollar.

''There was enormous selling spree in the market and the local unit is likley to be under pressure in the coming sessions also.

Rupee will retain its strength in the coming days,''another dealer said.

Forward premia fell marginably today. Six month premia was quoted at 3.13 per cent (4.28), while one year premia ended at 3.07 per cent (3.72).

The Reserve Bank today today fixed the reference rate at Rs 40.53 per US dollar, up by seven paise from Friday's rate of Rs 40.60.

Indian currency today appeared stronger against major world currencies. Against Euro, Rupee ended lower at 54.49/50 (54.45/46) per unit each, against Pound the local currency ended higher at 80.30/31(80.42/43) per unit and Yen was quoted up at 33.28/29 (33.31/32) per 100 units each, dealers added.

UNI