Rupee moves up by four paise against USD
Mumbai Dec 11: The Rupee today moved up by four paise at 39.36 against the US Dollar from its previous close of 39.40/41 on speculation of heavy inflows in the Indian equity market.
The partially convertible Indian Unit traded in a firm range band of 39.34 and 39.3950 per dollar in a volatile interbank foreign exchange (Forex) market on hopes that after expected cut in rates by the US Federal Reserve foreign institutional investors would drive in the funds in the Indian market, dealers said.
Dealers expect that the local unit may further appreciate against US currency in the future sessions and according to some reports Rupee would touch the level of 38.00 as there is a high possibility of capital inflows in the Indian market. Volitality in the market is likely to persist, dealers added.
The six-month forward premium closed higher at 1.84 (1.64) per cent, while annualized premium ended up 1.36 (1.23) per cent.
Meanwhile, the Reserve Bank of India (RBI) today fixed the reference rate at Rs 39.36 per US Dollar. The reference rate was up by two paise as compared to yesterday's rate of Rs 39.38 per USD.
The Rupee today traded stronger against other major world currencies. The Indian unit ended firm at 57.60 (57.86) against the Euro. Rupee closed at 80.50 (80.51) per unit against Pound Sterling. While against the Japanese Yen, it ended firm at 35.08 (35.24) per hundred units.