UAE: Indian rupee drops against dirham after dollar index hits 2-month high

An upward movement in crude prices also weighed on the South Asian currency


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By Web Desk

Published: Fri 25 Aug 2023, 10:17 AM

Last updated: Fri 25 Aug 2023, 10:19 AM

The Indian rupee snapped its three-day rally and depreciated by 12 paise to 82.68 against the US dollar (22.53 against UAE dirham) in early trade on Friday amid a firm American currency and subdued equity markets.

An upward movement in crude prices also weighed on the South Asian currency even as the inflow of foreign funds capped the fall, forex traders said.

At the interbank foreign exchange, the rupee opened weak at 82.60 and then tumbled to the lowest level of 82.69 against the greenback (22.53 against UAE dirham). It later traded at 82.68, registering a fall of 12 paise over its previous close.

[Editor's Note: For real-time forex rates, click the widget below or visit KT's dedicated Trading News page here.]

The drop back below 82.50 (after reaching near 82.36) "has more likely than not soured the overall momentum," a forex trader at a Mumbai-based bank said.

"And with the dollar index where it is, you would have to say the bias on the rupee in today's session is on the downside."

The dollar index rallied 0.6 per cent on Thursday and advanced more in the Asian session to make it to its highest level in two-and-half months.

Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Symposium later in the day is in focus with investors looking for hints on whether interest rates will rise more and what Powell makes of the recent sell on US Treasuries.

(PTI, Reuters)

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