Indian rupee rises against UAE dirham on foreign fund inflows

The Indian rupee gained 10 paise to 81.96 against the US dollar (22.33 versus the UAE dirham) in early trade on Wednesday, tracking the weakness of the American currency in the overseas market.

Forex traders said significant foreign fund inflows and easing crude oil prices supported the rupee.

At the Indian interbank foreign exchange, the rupee opened at 82.06 against the dollar and then rose to 81.96, registering a gain of 10 paise over its previous close.

On Wednesday, the rupee closed at 82.06 against the US currency. Traders said investors were cautious as they awaited inflation data from the US expected later in the day.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.05 per cent to 101.55.

Brent crude futures, the global oil benchmark, declined 0.72 per cent to $76.88 per barrel.

Meanwhile, India's inflation data, due later in the week, will provide cues on the RBI's next rate hike moves, traders said.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they purchased shares worth Rs19.42 billion, according to exchange data.

In the domestic equity market, the 30-share BSE Sensex declined 74.08 points or 0.12 per cent to 61,687.25 on Wednesday. The broader NSE Nifty rose 20.25 points or 0.11 per cent to 18,245.70.

(With inputs from PTI)

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