Rupee firms up further, closes at a new high of 39.76/77

Mumbai, Sep 24: The Rupee continued its gaining spree against the U S Dollar and firmed up smartly further by 15 paise to settle at a new nine year high of Rs 39.76/77, in an absolutely one-way trading at the interbank foreign exchange (forex) market today.

The local currency made a firm start at Rs 39.84/85, and went up to Rs 39.76/77 per dollar, during the course of trading and held steady at the level till close of the day, dealers said.

''It is a nine-year-high of the Rupee against U S Dollar'', recalled a senior forex dealer.

The continuous rise of Rupee in the spot market also made a great impact on the forward premiums as the sixth month and annualised premiums crashed heavily.

Sixth month forward premia against U S Dollar ended at 0.78 per cent as against last friday's close of 1.20 per cent. Similarly, the 1-year premia closed at 1.04 per cent premium from the previous close of 1.50 per cent.

''The Rupee would have gone up further, but since the RBI was holding it, the gain was limited,'' said a senior forex dealer at the leading private commercial bank.

Reserve Bank today fixed the reference rate at Rs 39.82 per US dollar, up by five paise as compared to the previous mark of Rs 39.87 per dollar.

The Rupee also gained further against other world currencies, it finished against Euro at Rs 56/02/03 (56.05) per unit. Against Pound Sterling, it ended at 80.41/42 (80.45) per unit each, while against Japanese Yen, it closed at 34.52/53 (34.58)58 per hundred units each.

UNI