Rupee declines; closes at 40.86/87 per dollar

Mumbai, June 25: The Rupee ended sharply lower by 11 paise against the American Greenback to settle at 40.86/87 per dollar from last friday's level of 40.75/76, in the Interbank Foreign Exchange (Forex) market today.

Forex dealers attributed today's trading as 'one sided'. The Rupee continued its slide against U S Dollar, on concerns over likely intervention from the Reserve Bank of India (RBI) to halt Rupee's slide, besides dollar selling by few foreign banks during the course of trading.

The local unit opened at 40.77/79, moved down and did not look up during till close of the day and finally ended at 40.86/87.

The indian unit has gained by 8.55 per cent during the period of a year so far.

RBI's reference rate was at Rs 40.81 per US dollar, down by 10 paise from the last friday's rate of Rs 40.71 per dollar.

Foward premia ended lower today. Six month premia ended at 2.35 (2.71) per cent annualised premia was down at 2.49 (2.69) per cent.

Also, the domestic unit performed weaker against major world currencies. Against Euro, Rupee closed lower at 54.86/87 (54.68/69) per unit each, against Pound it closed higher at 81.46.47 (81.29/30) per unit each while against Yen it was quoted weak at 33.01/02 (32.80/81) per hundred unit each.

UNI