Indian rupee appreciates against UAE dirham

The Indian rupee appreciated by 24 paise to 82.08 against the US currency (22.36 versus the UAE dirham) in early trade on Wednesday due to a weak dollar in overseas markets and forex inflows.

At the Indian interbank foreign exchange market, the rupee opened higher at 82.08 against the US dollar and moved in a narrow range of 82.04 to 82.10 later in early deals.

The rupee closed at 82.32 on Monday. Forex markets were closed on Tuesday for the Mahavir Jayanti holiday.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, declined 0.03 per cent to 101.56 after a weak set of economic data bolstered expectations of the end of the US Fed rate hike cycle.

Oil prices also moved in a narrow range in early Asian trade on Wednesday as weak US economic data weighed on the demand scenario despite a surprise production announced by oil cartel Opec and its allies.

In India, investors are likely to remain cautious ahead of the Reserve Bank of India’s (RBI) monetary policy decision.

RBI’s rate-setting panel on Monday started its three-day meeting amid expectations that the central bank may go for a 25 basis points hike in benchmark interest rate, probably the last in the current monetary tightening cycle that began in May 2022.

The 30-share BSE Sensex rose by 240 points or 0.41 per cent to 59,346.52 while the broader NSE Nifty advanced 61.20 points or 0.35 per cent to 17,459.25.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Monday as they purchased shares worth Rs3.21 billion, according to exchange data.

(With inputs from PTI)

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