Rupee closes weaker at 40.86/88 against USD

Mumbai, May 30: The Rupee today closed weaker at 40.86/88 per dollar as compared to the previous close of 40.49/50.

However, analysts said the local currency is still stronger and may continue at these levels throughout the month owing to the month-end dollar demand by oil-companies.

''Rupee is stronger still as the major Asian currency but is likley to come down in next month'', said Indrajith Sen Guptha, Chief forex dealer, Canara Bank.

In the morning session, the local unit opened at 40.53/55 but later came down to mark a day's low of 40.86/88, at the closing.

Forward premia fell to further depths today as Six month premia went further down to 2.03 percent(3.03), while one year premia also ended lower at 2.43 percent(2.99).

Reserve Bank today fixed the reference rate at Rs 40.64 per US dollar, down by 19 paise from yesterday's rate of Rs 40.45 per USD,said RBI.

Indian currency today performed stronger against major world currencies. Against Euro, Rupee ended higher at 54.40/45 (54.52/53) per unit each, against Pound the local currency ended remarkably higher at 80.02/03(80.13/14) per unit and Yen was quoted up at 33.31/32(33.19/20) per 100 units each, dealers added.

UNI