Rupee closes stronger against USD

Mumbai, June 12: The Rupee firmed up marginally against the U S Dollar to finish at 40.75/76 from its previous close of 40.79/80 in a relatively less volatile trading at the Interbank Foreign Exchange (Forex) market today.

Backed by strong capital inflows, the local currency made a firm start at 40.76 against the American Greenback. It touched an intra-day high of 40.66 during the course of trading, before settling at 40.75/76 for the day, forex dealers said.

''Market was less volatile compared to the previous day'', said a senior forex dealer with the leading private commercial bank.

According to him, there was ample supply of USD to address the demand which pushed up the Rupee.

The Indian unit, which has been emerged a strong currency in Asia had gained over 8 per cent against the U S Dollar in last few months.

The forward premiums ended higher, with sixth month premia ending at 3.00 (2.59 per cent) per cent and annualised at 2.85 (2.66) per cent respectively.

In the cross currency trade, the Rupee ended firm at 54.23 per Euro from its previous close of 54.30.31. The local unit however, ended weak against Pound sterling and finished at 80.20 from last close of 80.02/03.

The Rupee ended higher at 33.37 per hundred unit against the Japanese Yen as against the previous close of 33.43/44).

Elsewhere, the Reserve Bank of India (RBI) has fixed the reference rate at Rs 40.73 per US dollar, up by 18 paise from yesterday's rate of Rs 40.91 per USD.

UNI