Rupee ends almost flat at 39.30/31 per USD

Mumbai, Nov 1 (UNI) The Rupee today ended closer to a nine-and-half year peak at 39.30/31 per dollar, almost flat against the greenback, as compared to the previous close of 39.31/32 per dollar on suspected intervention by the Reserve Bank of India (RBI).

The partially convertible Indian currency made a smart start at 39.24/26 per dollar due to initial inflows on global cues after the US Federal Reserve announced rates cut by 25 basis points.

Soon after few trades in the early sessions, the Rupee was supported around 39.31 per dollar by the reported intevention of the Central Bank. Moreover, the Rupee traded in range bound limits of 39.34 and 39.24 per dollar during the day trade, dealers said.

Dealers maintained that after the US Fed rates cut, the Indian unit was expected to appreciate further but the reported intervention of RBI blocked its movements.

The inter bank foreign exchange (Forex) market witnessed a range-bound trade during the day session. Indications are there for further appreciation of Rupee against the US unit due to global factors including inflows into the Asian markets and since the dollar was on its weakest side against other major currencies of the world today, dealers added.

The six-month forward premium closed low at 1.40 (1.67) per cent, while annualised premium ended at 1.17 (1,37) per cent.

Meanwhile, the RBI today fixed the reference rate at Rs 39.32 per US Dollar. The reference rate was steady, compared to its yesterday's rate of Rs 39.32 per USD.

The Rupee traded strong against other major world currencies today. The Rupee against Euro ended strong at 56.41/42 (56.84) per unit. Against Pound Sterling, it closed flat at 81.39/40 (81.40) per unit and against the Japanese Yen, the Rupee ended at 33.74/75 (34.10) per hundred units.

UNI