Rupee closes firm at 40.11/12 per USD

Mumbai, Mar 25 (UNI) The Rupee today extended gains against the USD to close at 40.11/12, climbing by nearly fifteen paise from its previous close of 40.26/27 per dollar, following strong rally in the indian equity market.

The local unit moved in a wide range band of 40.02 and 40.20 per dollar before closing on a firm note in late trading session amidst selling of dollars in an extremely active inter bank foreign exchange market. Nationalised banks seemed to be buying dollars at its lower level of 40.02 per dollar, dealers said.

''A considerable amount of inflows in the local equity market through the foreign institutional investors also boosted the upsurge of the Indian unit,'' a senior forex dealer with a leading private bank said.

The Indian bourses today posted strong gains with the Sensex ending above the 16K level. However, the US unit today weakened against other major global currencies.

Meanwhile, the six-month premium was quoted lower at 1.61 (1.76) per cent and annualised premium closed flat at 1.28 per cent. The Reserve Bank of India (RBI) fixed the reference rate for the US dollar at Rs 40.12, down by 22 paise from its last close of Rs 40.34.

The Rupee closed weaker today at 62.31 (61.96/98) against the Euro. It ended at 79.70 (79.62/64) per unit against the Pound Sterling and closed at 39.90 (40.30/32) per hundred units against the Japanese Yen.

UNI PP OBB SM1840