Rupee closes lower at 40.40 per dollar

Mumbai, July 18: The Rupee today closed weaker at 40.40 per dollar, down by nearly 3 paise from the past close of 40.37/38.

The unit started off the day at 40.37/38 per dollar and marked a day's low of 40.45/46 against the US currency.

''Reserve bank's presence was vivid in the market today. This apart, companies in textile and IT sector was also seen buying dollars.'', said Sudharshan Bhatt, chief forex dealer, Corporation bank.

Rupee is likely to come down further in coming sessions since the currency appreciation has come as a bolt from the blue for the exporting industry, which may prompt the government and Reserve bank to introduce further tightening measures, said Mr Bhatt.

''Rupee is likely to stabilise at a moderate 40.25-75 margin if Reserve bank permits it to be so.'', he added.

Forward premia continued to be at the lower end today. Six month premia ended at 1.17 percent while annualised premia ended at 1.53.

Rupee ended at 55.92 per unit each against Euro, at 82.93 per unit each against pound while Yen was quoted at 33.12 per hundred unit each.

UNI