Rupee ends at 42.72/73 against USD

Mumbai, May 26 (UNI) The Rupee today recovered from early lows against the US Dollar and closed slightly lower by two paise at 42.72/73 from its previous close of 42.70/71.

Resuming the session on a weak note at 42.75/76, the partially convertible Indian currency came off the early lows against the greenback and touched a day's high of 42.5250 in late-afternoon trade on suspected intervention by the Reserve Bank of India.

However, later it tumbled near the previous close level on month-end dollar demand from oil companies and losses in local stocks due to hightening concerns of slowing capital inflows, dealers said.

Meanwhile, Sensex today was down by 1.8 percent to close far below 16,500 level on the similar concenrs. Oil was trading above USD 133 per barrel today. It had touched a high above USD 135 a barrel last week. India imports almost 70 percent of its oil needs and refiners are the largest buyers of dollars.

RBI today fixed the reference rate for the US Dollar at Rs 42.56 per unit, 28 paise lower from the previous day's level of Rs 43.84 per USD.

The six-month premium was quoted higher at 2.11 (1.80) per cent and annualised premium closed at 1.56 (1.35) per cent.

Rupee ended the day slightly firm at 67.21 (67.24/25) per unit against Euro. It closed at 84.34 (84.55/56) per unit against the Pound Sterling and ended at 41.22 (41.25/26) per hundred units against the Japanese Yen.

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