Rupee ends nearer to 9-1/2 year peak, at 39.32 per USD

Mumbai, Oct 31: The Rupee today ended nearer to the Nine and half year peak at 39.32 per dollar with a gain of seven paise against the American greenback as compared to the previous close of 39.39/40 per dollar.

The partially convertible Indian currency made a smart start at 39.32/34 per dollar in a choppy inter bank foreign exchange (Forex) market today. It was capped around 39.32 per dollar after the Reserve Bank of India's reported intevention. Moreover, the rupee traded in a narrow range of 39.32 and 39.34 per dollar during the day trade, dealers said.

Dealers maintained that US Federal Reseve's announcement pressure was witnessed in the forex market due to which the market was less active and rupee traded range bound.

'' It is being expected that if US Fed recommends further cuts in the rates the Indian unit may cross over the nine and half year peak of 39.27 per dollar,'' a senior dealer with a leading private bank said.

The six-month forward premium closed firm at 1.67 (1,43) per cent, while annualised premium ended at 1,37 (1.25) per cent.

Meanwhile, RBI today fixed the reference rate at Rs 39.32 per US Dollar. The reference rate was up by 8 paise as compared to yesterday's rate of Rs 39.40 per USD.

The Rupee traded in a mixed pattern against other major world currencies today. The Rupee against Euro ended weaker at 56.84 (56.42/43) per unit. While, against Pound Sterling, it closed firm at 81.40 (80.95/96) per unit and against Japanese Yen, the rupee ended at 34.10 (34.16/17) per hundred units.

UNI