Rupee recovers by 26 paise against USD

Mumbai, May 31: The Rupee recovered smartly by 26 paise against the U S Dollar to close at 40.60/61 from its previous close of 40.86/88 per dollar, on heavy sell off by corporates in volatile trading at the interbank foreign exchange (forex) market today.

The local currency made a firm start at 40.64/66 per dollar, it fell to the low of 40.75 during the course of trading. Rupee firmed towards late noon when traders gave up their hopes that it would not loose further, dealers said adding that a result of which Rupee recovered well and closed at 40.60/61.

The Reserve Bank of India (RBI) has fixed its reference for the US Dollar at 40.73, nine paise up from the previous rate of 40.64 per U S unit.

Forward premiums closed lower on paying pressure. The six month forward premia were quoted at 2.57 per cent (2.03) and annualised premia ended at 2.72 per cent (3.03).

The local currency also posted gains over the world currencies.

Rupee ended at 54.40/41 (54.40/45) against Euro, while it finished at Rs 79.99/80.01 (80.02/03) against Pound Sterling and closed at Rs 33.26/28 (33.31/32) against per 100 units of Yen.

UNI