Rupee ends high at 40.55/56 per dollar

Mumbai, Sep 11: The Rupee appreciated sharply today and ended at 40.55/56 per dollar, gaining by over nearly 11 paise from the previous close of 40.66/67 per dollar.

''There was sufficient demand in the market with much of the buying spree seen from the oil companies. Inflows were very less and liquidity levels are also tightening, currently below Rs 20,000 crore '', said a dealer.

The unit, which opened at 40.60/62 per dollar, nearly six paise up from the last close, gathered momentum sharply to jump up to 40.54 per dollar during the intra day.

However, at this stage Reserve bank is learnt to have intervened in the market to check the currency's appreciation beyond the desired levels.

During the day, rupee touched a day's low of 40.64 per dollar reflecting the volataility that still persists in the forex market but recovered smartly in late day trade.

Mirroring the smart pace of the unit, forward premia also bettered its levels as six month and annualised premia ended respectively at 1.58(1.30) percent and 1.58(1.48) percent. Call money rates closed today at 6.00-6.15 and stood range bound indicating the tightening liquidity conditions in the system.

Against major world currencies, Rupee showed strong today. Against Euro it ended at 56.05(56.09), against Pound Sterling at 82.40 (82.54) per unit each while Japanese Yen was quoted marginally up at 35.65(39.95) per hundred units each.

Reserve Bank today fixed the reference rate at Rs 40.58 per US dollar, up by five paise, compared to previous day's rate of Rs 40.63 per dollar.

UNI