Rupee gains from capital inflow; ends at 40.75/USD

Mumbai, June 20: Rupee ended stronger at 40.75 per dollar up by nearly 5 paise from previous close on strong capital inflows to Indian equities, said brokers.

Inflows are expected to maintain strength in ensuing sessions which may take the currency value back to its recent prominent margins, said a leading dealer with a public sector bank .

''Unless the Reserve Bank of India (RBI) comes out with further interventions, Rupee may rise to higher levels in coming days,'' he said.

In the early day trade, Rupee opened almost flat at 40.81 as compared to the previous close of 40.79/80 per dollar.

It later went down to a day's low of 40.86 in the early day trade but later improved margins as oil companies went on dollar buying and inflows intensified.

''There was higher inflows to equities in second half of the day which supported Rupee's gains,'' brokers said.

Six month premia closed at 5.39 today. RBI fixed the reference rate at Rs 40.82 per US dollar down by 12 paise from its yesterday's rate of Rs 40.70 per USD.

UNI