Indian rupee opens higher against UAE dirham on Monday morning

Most Asian currencies were stronger on the week's first trading day



by

A Staff Reporter

Published: Mon 16 Jan 2023, 10:16 AM

The Indian rupee gained nine paise to 81.29 against the US dollar (22.14 against the UAE dirham) in early trade on Monday supported by broad dollar weakness and a firm trend in Indian equities.

Forex traders said sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias.

At the Indian interbank foreign exchange, the South Asian currency opened at 81.29 against the dollar, registering a rise of nine paise over its previous close.

On Friday, it depreciated by eight paise to close at 81.38 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.32 per cent to 101.87.

Brent crude futures, the global oil benchmark, fell 0.53 per cent to $84.83 per barrel.

According to Sriram Iyer, senior research analyst at Reliance Securities, the rupee opened stronger on Monday, tracking a weak dollar and a possibility of a smaller rate hike from the US Fed in February.

Most Asian peers were stronger this morning, and stable oil prices and the recent fall in Treasury yields could aid the rupee.

However, attractive rates for importers and the possibility of dollar-buying intervention by the Reserve Bank of India could limit sharp gains.

In the Indian equity market, the 30-share BSE Sensex was trading 143.87 points or 0.24 per cent higher at 60,405.05. The broader NSE Nifty advanced 22.75 points or 0.13 per cent to 17,979.35.

Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs24.22 billion, according to exchange data.

(With inputs from PTI)

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