Rupee Closes At 39.40

The rupee opened at 39.40 and closed at 39.37/38, unchanged from the previous close of 39.38. During the day it traded between 39.36 and 39.44. A forex dealer with a private bank said that public sector banks were seen on both the selling and buying sides. It seems that the public banks have been told to curb the volatility in the forex market, the source said. The market was disappointed by the 50 basis point rate cut by the US Fed, announced yesterday, the dealer added. Among global currencies, the dollar was flat against currencies such as the euro and yen and it gained slightly against the pound. In the forward premia market, the six-month closed at 2.07 per cent (2.24 per cent) and the 12-month closed at 1.73 per cent (1.84 per cent).