Rupee closes at 40.36/37 per Dollar

Mumbai, July 16: The Rupee today closed at 40.36/37 per Dollar, up by six paisa from previous close of 40.42, after touching a high of 40.29/30 during the day.

However, at this point Reserve Bank intervened and bought dollars through public sector banks to bring down the unit to normal levels.

Abundant inflows from Foreign Institutional Investors continued today with market watchdogs expecting further monetary measures from regulators on local unit.

Rupee started off the trade firm at 40.38/39 per dollar and gained massively in the morning session on strong inflows. The unit went up to Rs 40.29/30 per dollar and remained at peak margins until Reserve Bank's intervention prompted state-run lenders State Bank of India and Bank of Baroda to buy dollars rampantly, said dealers.

''Rupee stood very much stronger against world currencies today prompting Reserve Bank to intervene in the trade. Rupee is likely to remain stronger in coming sessions also,'' said Suresh C K, Senior Forex dealer of Development Credit Bank.

Rupee is continuing to be Asia's strongest currency this year against a generally weak US dollar.

The Reserve Bank today fixed the reference rate at Rs 40.37 per US dollar, up by ten paise compared to its Friday's rate of Rs 40.47 per dollar, said RBI.

Forward premia continued to be at the lower end as six-month premia ended at 1.77(1.91) per cent, while annualised premia closed at 1.86(1.93) per cent.

Rupee, fell marginally against major world currencies. It ended at 55.60(55.50)per unit each against Euro, at 82.18(81.85)against Pound Sterling, while Japanese Yen was quoted at 33.18(32. 90) per 100 units each.

UNI