Indian rupee gains against UAE dirham in early trade

Forex traders say a positive trend in Indian equities, foreign fund inflows and crude oil prices below $80 a barrel supported the South Asian currency



by

A Staff Reporter

Published: Thu 27 Apr 2023, 9:07 AM

The Indian rupee gained 8 paise to 81.66 against the US dollar (22.25 against the UAE dirham) in early trade on Thursday amid weak American currency in the overseas market.

Forex traders said a positive trend in Indian equities, foreign fund inflows and crude oil prices below $80 a barrel also supported the South Asian currency.

At the Indian interbank foreign exchange, the rupee opened at 81.69 against the dollar and then climbed to 81.66, registering a rise of 5 paise over its previous close.

On Wednesday, the rupee closed at 81.74 against the US currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.07 per cent to 101.40.

Brent crude futures, the global oil benchmark, advanced 0.48 per cent to $78.06 per barrel.

"The rupee is expected to trade in the narrow range of 81.70-82.30 levels as mixed economic data and a fragile geo-political environment is likely to increase volatility, and following a risk-management policy would be suitable this time," said Amit Pabari, managing director, CR Forex Advisors.

In the Indian equity market, the 30-share BSE Sensex advanced 38.68 points or 0.06 per cent to 60,339.26 points. The broader NSE Nifty gained 5.45 points or 0.03 per cent to 17,819.05 points.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Wednesday as they offloaded shares worth Rs12.57 billion, according to exchange data.

(With inputs from PTI)

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