Rupee ends stronger at 40.77/78 per dollar

Mumbai, June 18: Adequate capital flows to Indian equities made the spot Rupee to close today at 40.77/78 per dollar, up by 7 paise from the previous close.

The Indian unit was on an upward move and is likely to rise further in coming sessions owing to the market presence of ICICI Bank public offer, that is scheduled to hit the market tomorrow, said market observers.

''The market was almost dull till 1600 hours and Rupee was seen hovering around 40.75-80 but later turned stable as some dollar buying was witnessed. However, the huge inflows expected to hit Indian equities this week is likely to take Rupee to 40.50/51 levels.'', said Mr. Naveen, Senior Forex Dealer, Development Credit Bank.

In the early day trade, the domestic unit opened stronger at 40.75/76 as against the 40.85 on Friday. It posted a day's low of 40.80 by noon but later improved levels before closing at 40.77/78.

Reserve Bank today fixed the reference rate at Rs 40.76 per US dollar, up by 21 paise from its Friday's rate of Rs 40.97 per USD, said RBI.

Forward contracts fell marginally today as six month premia ended down at 2.91(3.14) per cent and annualised premia at 2.81(2.88) per cent.

Rupee stood weaker against the world currencies also. It ended weaker at 54.68/69(54.25) per unit each against Euro, at 80.81/82(80.27) per each unit against pound sterling and at 33.03/04(33.00) against Yen per 100 units each.

UNI