Indian rupee slips against UAE dirham, rising oil prices weigh

The Indian rupee declined nine paise to 82.74 against the US dollar (22.54 versus the UAE dirham) in early trade on Tuesday as rising crude prices weighed on investor sentiment.

Besides, foreign fund outflows put pressure on the rupee, forex dealers said.

At the Indian interbank foreign exchange, the rupee opened weak at 82.71 against the dollar, then slipped further to 82.74, registering a fall of nine paise over its previous close.

In the previous session on Monday, the rupee appreciated 17 paise to close at 82.65 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.19 per cent to 104.11.

Brent crude futures, the global oil benchmark, advanced 0.45 per cent to $84.30 per barrel.

In the equity market, the 30-share BSE Sensex was trading 61.14 points or 0.10 per cent higher at 60,627.56. The broader NSE Nifty rose 17.90 points or 0.1 per cent to 18,032.50.

Foreign Institutional Investors (FIIs) were net sellers in the Indian capital markets on Monday as they sold shares worth Rs4.97 billion, according to exchange data.

“Month-end exporter selling is likely to cap upside in USD/INR. The rupee is likely to trade in an 82.60-82.90 range with sideways price action,” IFA Global Research Academy said in a research note.

(With inputs from PTI)

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