Indian rupee gains against UAE dirham and rises to 19.7

Filed on May 31, 2021

(Agencies file)

The weakening of the US dollar and positive domestic equities strengthen Indian currency

The Indian rupee strengthened by nine paise to 72.36 against the US dollar (19.71 versus UAE dirham) in early trade on Monday (May 31), tracking the broad weakness of the greenback and positive domestic equities.

At the interbank foreign exchange, the domestic unit opened at 72.38 against the dollar, then inched higher to 72.36, registering a gain of 9 paise over its previous close.

On Friday (May 28), the rupee had settled at 72.45 against the US dollar.

“The rupee started on a flat to stronger note this Monday against the dollar, tracking the overall weakness of the dollar. Foreign portfolio investment (FPI) flows, absence of the Reserve Bank of India (RBI) could lend support to the currency,” Reliance Securities said in a research note.

Most Asian currencies have started mostly flat to marginally weaker against the US dollar this Monday morning and could cap further appreciation, the note added.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03 per cent to 90.00.

On the domestic equity market front, the 30-share BSE Sensex was trading 186.80 points or 0.36 per cent higher at 51,609.68, while the broader 50-share NSE Nifty advanced 53.40 points or 0.35 per cent to 15,489.05.

Foreign institutional investors (FIIs) were net buyers in the capital market on Friday, as they purchased shares worth Rs 913.59 crore, as per exchange data.

India reported the lowest daily new Covid-19  infections in 50 days with 1,52,734 cases, taking the tally to 2,80,47,534 on Monday, while the active caseload declined to 20,26,092, the Union Ministry of Health & Family Welfare said.

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