Rupee ends 29 paise up at 40.87/88 per dollar

Mumbai, Aug 31:The Rupee bounced back strongly today to end at 40.87/88 per dollar, gaining nearly by 29 paise from the last close of 41.16/17 per dollar, buoyed by abundant capital inflows and rampant selling by corporates.

The unit, which started off the day firm at 41.10/12 per dollar plunged to a low of 41.96/98 per dollar before climbing up to a day's high of 40.87/88 per dollar at which it ended the day in the late day trade.

According to traders, the unit is likely to improve margins next week and may go up to 40.70-75 levels drawing support on seemingly impressive capital inflows and on rallying stock markets.

Bombay Stock Exchange(BSE) today surged by nearly 196 points to settle at 15,318.60 as investors took to index pivotals, buoyed by robust gross domestic product (GDP) growth, declining inflation and firm Asian and European markets.

Six month and annualised forward premia ended at 1.06(1.22) and 1.21(1.29) per cent respectively.

Against the Euro, Rupee ended at 55.73/74(55.97) per unit each, against pound sterling it ended at 82.17/18(82.60) per unit each while Yen was quoted at 35.04/05(35.58) per 100 units each.

Reserve Bank of India (RBI) today fixed the reference rate at Rs 40.96 per US dollar, up by eight paise, compared to previous day's rate of Rs 41.04 per dollar.

UNI