Rupee closes firm at 42.68/70 against USD

Mumbai, July 21 (UNI) The Rupee today ended higher at 42.68/70 against the US dollar with a modest gain of six paise from its last close of 42.76 on growing expectations the government would survive the trust vote in Lok Sabha and ease global investors' fears of prolonged political uncertainty.

The partially convertible Rupee ended at 42.68/70 per dollar, off an intraday high of 42.6675, and about 0.2 percent stronger than its previous close of 42.76/77. It had hit a 15-month low of 43.50 earlier this month.

''It has more to do with sentiment than flows. There is more confidence now the government could survive the vote, and this prompted those long on the dollar in the morning to sell the currency,'' the trading head of a private bank said.

Indian shares rose 1.6 percent today, extending gains to a third straight session, as investors awaited the outcome of the confidence vote. ''The outlook for tomorrow will depend on how the stock markets react,'' the trader said.

The Reserve Bank of India (RBI) today fixed the reference rate for US Dollar at Rs 42.71 per unit, down seven paise against its Friday's rate of Rs 42.78 per dollar.

The six-month and annualised forward premium was quoted at 5.19 (5.09 )per cent and 4.38 (4.30) per cent, respectively.

Rupee ended the day firm at 67.48/50 (67.53/55) per unit against the Euro. It closed at 84.95/97 (85.15/17) per unit against the Pound Sterling, while Rupee ended at 39.78/80 (39.96/98) per hundred units against the Japanese Yen.

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