Rupee gains eight paise against USD

Mumbai, Apr 4: The Rupee today inched higher at 39.95/96 against the US Dollar, appreciating by about eight paise from its previous close of 40.03/04 per dollar on expectation of Reserve Bank of India's intervention to contain inflation.

The indian unit climbed to its highest close in five days today, after inflation surged to a three-year high and triggered hopes of possibility that the Reserve Bank of India would let the currency appreciate to rein in prices, dealers said.

The partially convertible Indian currency moved in a range band between 39.93 and 40.05 per dollar before ending on firm note in late trade.

Weekly data showed that annual inflation, based on wholesale price index (WPI), soared to 7.0 percent on March 22, hit an over three year high and was far exceeding analysts' expectations of 6.62 percent.

Meanwhile, the Reserve Bank of India fixed the reference rate for the USD today at Rs 39.97, up by two paise as compared to 39.95 yesterday.

The six-month premium was quoted almost flat at 2.53 (2.52) per cent and annualised premium ended at 1.77 (1.75) per cent.

The Rupee ended the session at 62.75 (62.15) against the Euro. It ended at 79.84 (79.25) per unit against the Pound Sterling, while closed at 38.97 (38.89) per hundred units against the Japanese Yen.

UNI