Rupee ends weaker at 40.34/35 per dollar

Mumbai, July 25: The Rupee met lower margins today and ended marginally weaker at 40.34/35 per dollar, paring losses from the stock market, which went down by 95.59 points today.

Rupee has lost nearly 10 paise against the preceding close of 40.25/26. It had touched a fresh nine-year peak of 40.2050 during the intra-day on Tuesday.

The unit started the day at 40.26/28 per dollar and later skidded to the day's low of 40.35 at which it closed later.

Rupee's downward pace was also attributed to the constant Reserve bank intervention, which was in the picture during most part of the day buying dollars through public sector banks, said dealers.

''Reserve bank was seen highly cautious about the curreny appreciation which might have prompted it to buy out dollars. Rupee is likely to come to 40.40-50 levels tomorrow'', said a leading dealer.

Dealers see rupee's stabilization at 40.25-75 margins in the next few months unless Reserve bank blocks this move.

Forward premia ended down today as six-month premia ended at 0.30 (0.92)per cent, while the annualised premia ended at 0.53 (1.27) per cent.

Rupee staged stronger against major world currencies today.

Against the Euro, it ended stronger at 55.44(55.63/64). Against Pound Sterling, it closed at 82.87(82.91/92), while against the Japanese Yen, it was quoted lower at 33.55(33.26/27)per hundreds unit each.

Reserve Bank today fixed the reference rate at Rs 40.30 per US dollar, down by six paise compared to its yesterday's rate of Rs 40.24 per dollar.

UNI