Re recovers to close at 40.60/61

Cutting short the overnight steep fall, the rupee on Thursday recovered smartly to close 26 paise up at 40.60/61 against the US currency, following heavy capital inflows amid lack of month-end dollar demand.

The Indian unit opened strong at 40.76/77 a dollar from Wednesday's close of 40.86/87 a dollar and later touched a low of Rs 40.80 on stray dollar demand from oil refinery companies.

However, bullish equity markets gave a support to the rupee's surge to a high of 40.60 per dollar. The currency ended the day at 40.60/61.