Rupee ends firm at 40.34/35 per dollar

Mumbai, Aug 3: Rupee climbed by nearly 8 paise today to end the trade at 40.34/35 per dollar as compared to the previous close of 40.42/43 per dollar taking a cue from the investor expectations that resulted in stronger inflows to equities.

Sensex gained for the second consecutive day and ended the day up by 152.70 points today at 15,138.40.

In the morning, Rupee opened at 40.37/38 per dollar and touched a day's high of 40.33 per dollar and later marked a day's low of 40.39 per dollar before settling stronger at 40.34/35 against the US currency.

Rupee may deviate upward on Monday as the hike in Cash Reserve Ratios (CRR) and removal of daily cap on reverse repo may exert its impact on the market, said a dealer.

Forward premia ended lower today as six-month premia ended at 1.71(1.93) per cent and annualised premia at 1.80(1.89) per cent.

Rupee stood weak against major world currencies during the day with Euro ending at 55.22(55.22) per unit, Pound Sterling at 82.10(82.00) per unit while Japanese Yen was quoted at 33.83(34.00) per hundred units each.

The Reserve Bank said it has fixed the reference rate for the day at Rs 40.36 per US dollar, up by seven paise, compared to the previous rate of Rs 40.43 per dollar.

UNI