Rupee closes firm at 40.42 per US dollar

Mumbai, July 13 (UNI) Indian Rupee today further gained strength and closed strong at 40.42 per US dollar, gaining nearly eight paise from its previous close at 40.49/50 per US dollar.

Rupee opened smartly at 40.46/47 per USD and taking cue from continued capital inflows from overseas market it gained strength during the noon and late sessions. Taking a firm value it closed at 40.42 per USD by the end of the day, dealers said.

Forward premia came down by few basis as six month premia ended at 1.91 (1.95) per cent, while annualised premia closed at 1.93 (2.00) per cent.

The Reserve Bank today fixed the reference rate at Rs 40.47 per US dollar, down by nine paise compared to its yesterday's rate of Rs 40.38 per USD, a RBI spokesperson said.

Subsequently, the rupee was stronger today against major world currencies. Against Euro it was quoted at 55.50 (55.82) per unit each, at 81.85 (82.30) against Pound Sterling, while was quoted at 32. 90 (33.15) against Japanese Yen.

UNI