Rupee hits 39.62 per USD level during intra-day trade

Mumbai, Sep 26 (UNI) The Rupee today touched a high of 39.62 against US Dollar, during intra-day trading, before finishing at 39.70/71, little higher than the previous close (39.7350/7450) in mixed trading at the interbank foreign exchange market today.

''The Rupee tried to even go up the 39.62 level, but Reserve Bank of India's reported intervention halted its gaining mood'', said a senior forex dealer with the leading private forex firm.

Taking a cue from the investment flows into the domestic stock markets, the local unit made a firm start at 39.70/72 per dollar in a volatile mood. It had touched the new high of 39.62 before 1000 hrs, atleast few minutes before the BSE Sensex crossed the 17000 mark in an intra-day trade, said Amogh Moghe, Forex Consultant.

The Rupee quoted a low of Rs 39.75 against U S Dollar, when the Reserve Bank of India (RBI) made heavy purchases somewhere in the range of 39.75 level, forex dealers said.

The local currency finally ended at Rs 39.70/71 per USD, they said.

''It is expected that the partially convertible Indian currency is expected to gain strength further but at the same time due to the expected intervention by the Apex bank it will be caped aroud 39.62/65 per dollar,'' a senior forex dealer with a leading private commercial bank said.

Meanwhile, the benchmark stock index at the Bombay Stock Exchange (BSE) today touched 17,000 mark during intra-day trading for the first time. It was up by more than 21 per cent since August 21, when it posted its lowest close in three months.

In the forwards section, (Forex) Sixth month forward premia against U S Dollar ended lower at 1.09 (1.26) per cent while, the 1-year annualised premia ended at 1.25 (1.35) per cent.

The RBI has fixed the reference rate at Rs 39.70 per US Dollar.

The reference rate was up by 11 paise as compared to previous day's rate of Rs 39.81 per USD.

In the cross currencies, the Rupee ended firm against Euro at 56.04/05 (56.45) per unit. The local currency closed slightly weak against pound sterling at 79.99/80.00 (79.95) per unit, while it finised at 34.38 (34.80) against Japanese Yen per hundred units.

UNI