Rupee gains from FIIs, ends trade at 40.54 per dollar

Mumbai, Jul 3: Rupee closed trade today at 40.54 per US dollar, with a massive gain of 12 paise, as compared to the previous close of 40.66.

Market remained highly volatile throughout the day as strong inflows continued to flood the market, particularly from Foreign Institutional Investments (FIIs) and partly from Pharmaceutical companies, said Mr Sudharshan Bhatt, Chief Forex Dealer, Corporation Bank.

Rupee started at 40.56/57 per dollar and moved up to 40.44 against dollar, highest in one month, by noon.

However, the Reserve Bank of India (RBI) intervened to buy dollars in order to stem the upward swing of Rupee, said Mr Bhatt.

''Inflows were enormously higher throughout the day. The local unit may cross the psychological barrier of 40.00 soon if the trend remains supportive,'' he added.

In the late day trade, Rupee crumbled to mark a day's low of 40.59 before settling at 40.54.

The Reserve Bank today fixed the reference rate at Rs 40.58 per US dollar, up by eight paise from its yesterday's rate of Rs 40.66 per USD.

The six month premia ended lower at 2.13(2.10) and annualised premia at 2.26(2.30).

Rupee lost marginally against major world currencies. Against Euro it ended at 55.26(55.20) per unit each while closed at 81.93(81.71) against Pound Sterling. Japanese Yen was also quoted lower at 33.68(33.13) per 100 units each, dealers added.

UNI