Rupee gains by 10 paise; Ends at 39.30/31 per dollar

Mumbai, Oct 10 (UNI) The Rupee today appreciated by nearly 10 paise to reach 39.30/31 per US dollar as against the past close of 39.41/42 on strong inflows and a bullish Sensex, that went up by 378 points during the day.

During the intra-day, it touched a low of 39.38 per dollar, nearly 7 paise down from its opening margin of 39.31/32 but later staged a smart comeback.

According to dealers, total inflows that might have entered into the Indian market is approximately around 25-30 billion US dollars in the current fiscal.

In a fairly active trade in the forex market, rupee stayed range bound (39.30-35) for most part of the day as foreign investors continued to eye high returns from the booming Indian bourses.

In order to drain out the excess liquidity resulting due to huge inflows, Reserve bank absorbed Rs 60,945 crore accepting all the 39 bids received, while it fixed the rupee reference rate at Rs 39.34 per dollar.

Forward premium appeared stronger today as six month premium ended at 1.54(1.03) percent while the annualised premium ended at 1.54 (0.98) percent.

Against euro, Rupee closed at 55.60(55.58/59) per each unit, against Pound Sterling at 80.20(79.94/950 per each unit, while Japanese currency (Yen) was quoted at 33.50(33.60/61) per 100 hundred units each.

UNI