Mumbai: Rupee recovers slightly

Mumbai, Aug 17: The Rupee recovered slightly, closing up by nearly 5 paise at 41.31/32 per dollar as compared to the last close of 41.36/37.

The unit had plunged by over 61 paise yesterday drawing significant correlation from the panic-ridden Dalal street, where the ghost of US-sub prime mortgage crisis played havoc over the week.

During the day, Rupee saw a dip of 41.71 per dollar in the morning session before recovering on strong capital inflows.

According to dealers, Public secor banks were seen in market rampantly buying dollars to support the falling rupee.

Following this, rupee gained strength to touch a day's high of 41.21 in the late day trade before settling a bit down at 41.31/32.

''Forex market was highly volatile mirroring the loss in Sensitive Index and may go further down to 40.75-85 levels next week.'', said Naveen Raghuvanshi, senior forex dealer from Development Credit Bank.

Forward premia stood lower as six month premia ended at 1.27(1.72) per cent while one year premia ended at 1.47(1.83) per cent. Reserve Bank today fixed the reference rate at Rs 41.57 per dollar down by 48 paise, compared to yesterday's rate of Rs 41.09.

Rupee had a major fall against major world currencies today.

Against Euro it ended at 55.58(55.19/20)per unit each, against Pound Sterling at 81.85(80.05/06) per unit while against Yen it was quoted at 36.39 (36.04/05) per hundred units each.

UNI