Rupee extends gains, closes at 42.76/77 per USD

Mumbai, July 18 (UNI) The Rupee today appreciated by another five paise to close at a three-week high at 42.76/77 per US Dollar, extending the gains on the third straight day on strong rally in stock market after a sharp fall in oil price.

The Indian unit firm up as banks sold dollars after oil prices fell further away from record highs, calming concerns of a widening trade deficit, dealers said.

Moreover, rupee had touched an intraday high at 42.66 per dollar in early trade on strong global cues and finally closed on a firm note as compared to previous close of 42.8150/8250 per dollar.

Indian stocks surged by 4 per cent today to their highest close in more than a week, led by banks, as less-than-expected inflation eased the concerns of further monetary tightening, dealers opined.

The Reserve Bank of India (RBI) today fixed the reference rate for US Dollar at Rs 42.78 per unit, down 16 paise against its yesterday's rate of Rs 42.94 per dollar.

The six-month and annualised forward premium was quoted at 5.09 (4.80) per cent and 4.30 (4.44) (4.48) per cent, respectively.

Rupee ended the day firm at 67.53 (67.65) per unit against the Euro. It closed at 85.15 (85.45) per unit against the Pound Sterling, while Rupee ended at 39.95 (40.40) per hundred units against the Japanese Yen.

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