Rupee moves further up; Ends at 40.85 per dollar

Mumbai, June 15: Buoyed by enormous capital inflows to equities, Rupee today moved up by 5 paise to end at a stronger margin of 40.85 per dollar and is likely to strenghten further in weeks ahead, dealers said.

Indian Unit, started firm at 40.90 per US dollar traded in lower margins in the early day session and touched a days low of 41.01 by noon.

However, a weak dollar and commendable inflows supported Rupee to regain prominence to close at 40.85. Rupee had ended trade on Thursday at 40.90.

''Inflows will be higher next week owing to the presence of mammoth IPOs in Market. Rupee is likley to bounce back to its peak levels and has also strengthened marginally against the Japanese currency'', said C.K.Suresh, Senior Dealer of Development Credit Bank.

Forward contracts stood weaker today as six month premia ended down at 3.14(3.16) per cent and annualised premia at 2.88(2.96) per cent.

The domestic unit strenghtened also against major world currencies. It ended stronger at 54.25(54.27/28) per unit each against Euro, at 80.27(80.30/31) per each unit against pound sterling and at 33.00(33.17/18) against Yen per 100 units each.

UNI