Rupee closes weaker at 40.49/50 per US dollar

Mumbai, July 12 (UNI) An extremely volatile market, where huge deviations in currency value made ripples in investor circles, witnessed a halt to Rupee's gains today after it closed weaker at 40.49/50 per US dollar, nearly 10 paise down, from the preceding loss.

The Rupee opened smartly at 40.37/38 per USD taking cue from continued capital inflows from overseas market and also on investor aspirations that Reserve Bank would abstain from any kind of interventions on home currency.

The domestic unit escalated to a day's high of 40.33/34 per USD around noon. However, it got weak in the afternoon trade as corporates, especially some construction companies, bought dollars on the fear of Reserve Bank intervention, said dealers.

''I don't think RBI intervened in the market today. However, the fear was visible,'' said a leading dealer.

Forward premia started stronger, but later closed the day weaker as six month premia ended at 1.95 per cent, while annualised premia closed at 2.00 per cent.

Reserve Bank today fixed reference rate at Rs 40.38 per USD, which is as same as yesterday's rate.

Subsequently, the rupee stood marginally weaker against major world currencies. Against Euro it was quoted at 55.82(55.51) per unit each, at 82.30 (81.81) against Pound Sterling, while was quoted at 33.15(33.24) against Japanese Yen.

UNI