Rupee gains by 27 paise against USD;closes 41.09/10

Mumbai, Aug 21: The Rupee, which had seen a sharp fall last week against the U S Dollar, staged a smart recovery today, registering a gain of 27 paise to settle at 41.09/10 from the previous close of 41.36/37 in extremely volatile trading at the Interbank Foreign Exchange (Forex) market today.

The local currency, which has seen a fall of nearly 69 paise against the American Greenback during the last week in reaction to the stock market crash, made a partial recovery on the opening day of the week, as the market remained closed yesterday on account of Parsi New Year day.

The Rupee opened at 41.13/15 per dollar and firmed up to 40.97 during the course of trading on sustained dollar selling pressure.

The Rupee was quoted lower at Rs 41.25 before closing at Rs 41.09.10 per dollar, forex dealers said.

''The market continues to look at the movements in stock market for the next course of action, since lot of things are happening there due to fluid political situation at the centre,'' said a senior forex dealer at the leading private commercial bank.

The Reserve Bank of India (RBI) has fixed the reference rate to Rs 41.06 per dollar, up by 51 paise from the previous close of Rs 41.57 per dollar.

In the forwards, 6th month forward premia quoted at Rs 1.38 per cent (1.27 per cent) and 1-year premia ended higher at 1.50 per cent (1.47 per cent).

Like the gain against U S Dollar, Rupee closed higher by 12 paise at Rs 55.45/46 (55.58) against Euro.The local currency shot up by 44 paise to Rs 81.40/41 (81.85) against Pound Sterling and finished higher by 61 paise against Yen to close at Rs 35.77/78 per 100 yen from the previous close of Rs 36.39.

UNI