Indian rupee drops against UAE dirham, tracking Asian peers

The Indian rupee weakened on Thursday tracking its Asian peers lower but US dollar sales from state-run banks, likely on behalf of clients, limited the downside.

The South Asian currency was at 83.2125 against the US dollar (22.67 against UAE dirham) as of 9.20am, UAE time — down from its closing rate of 83.1425 (22.65) in the previous session.

The rupee had logged its best day in nearly two months on Wednesday.

Asian currencies fell, with the Malaysian ringgit leading losses down by 0.8 per cent. The dollar index was higher at 104.48, drawing support from better-than-expected retail sales numbers in the US.

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"While the rupee volatility has increased since last Friday, it remains within a range of 83 to 83.30," said Amit Pabari, managing director at FX advisory firm CR Forex.

The Indian rupee had plunged to its lifetime low of 83.42 on Friday.

Dollar sales from state-run banks on Thursday, likely on behalf of clients, helped limit the rupee's losses, a foreign exchange trader at a bank said.

The rupee has "returned to its range and that is likely to keep holding", the trader added.

Investors now await US initial jobless claims data for the preceding week due later in the day.

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