Rupee ends higher at 40.32/33 per US dollar

Mumbai, July 20: The Rupee today rose by seven paise and ended at 40.32/33 per dollar compared to the previous close of 40.39 on sustained purchases by state-run banks, dealers said.

The Rupee ended higher on strong inflows from FIIs. But, the state-run banks' dollar purchases from Reserve Bank of India prevented sharp rise in Rupee.

The widely traded 7.49 per cent, 2017 paper closed at Rs 97.81 against its previous close of Rs 97.63.

The bonds ended higher as headline inflation was unchanged from previous week. Absence of RBI measures to curb liquidity boosted sentiment. Market ignored gilt auction outcome, as it met estimates.

A leading dealer said ''I think inflation is likely to be more range bound at the moment; about 4.25-4.50 is what we are looking at for the next month''.

Rupee opened stronger at 40.32/33 per dollar against the previous close of 40.34/35 per dollar. During the intra-day, it went down to 40.33 and is currently (1200 hrs) trading at 40.3250 per dollar, dealers said.

The Reserve Bank of India (RBI) today fixed the reference rate at Rs 40.33 per US dollar, up by six paise compared to its yesterday's rate of Rs 40.39 per USD, a RBI spokesperson said.

Forward premia started the day stronger but ended lower.

Six month premia was quoted at 1.50 percent while annualised premia ended at 1.72 percent.

Rupee was stronger against major world currencies today. It ended at 55.54 (55.75) against Euro, at 82.66(82.75) against Pound Sterling per unit while Yen was quoted at 32.96(33.15) per hundred units each.

UNI