Rupee ends firm at 42.55/56 against USD

Mumbai, May 16 (UNI) The Rupee today recovered from its early losses to close at 42.55/56 against the US Dollar, gaining 20 paise from its previous close of 42.75/76.

The partially convertible Indian rupee had hit an intraday low at 42.92 against the greenback on strong demand from oil companies. However, Rupee improved in late trade though the demand for dollar remained high throughout the day in currency market, dealers said.

Dealers maintained that the local unit tumbled sharply to a 13-month low in the afternoon trade after data showing inflation at a new 3-1/2 year high heightened worries about slowing growth, record oil prices and the risk of foreign investors withdrawing funds.

However, it recovered from the low on fresh inflows of dollars in the late trade on positive global cues.

Meanwhile, annual inflation hit at 7.83 per cent on May 3 and the provisional rate for March 8 was revised up to 7.78 percent from 5.92 percent, government data showed.

Reserve Bank of India today fixed the reference rate for US Dollar at Rs 42.64, 24 paise higher from yesterday's rate of Rs 42.40 per USD. The six-month premium was quoted lower at 1.23 (1.38) per cent and annualised premium closed at 1.04 (1.19) per cent.

Rupee ended the day on a firm note at 65.92 (66.05) per unit against Euro. It closed at 82.85 (82.85) per unit against the Pound Sterling and ended at 40.63 (40.65)) per hundred units against the Japanese Yen.

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