Indian rupee trades in a narrow range against the UAE dirham

The Indian rupee was trading in a narrow range against the UAE dirham in the morning session on Monday as positive sentiment over the equities rises and easing crude oil prices were partially negated by a stronger American currency.

At the Indian interbank foreign exchange, the rupee opened at 82.08 against the dollar (22.36 against the UAE dirham). It touched an early high of 82.05 in initial deals.

The rupee on Friday settled at 82.06 against the dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of currencies, was trading at 101.8, down 0.02 per cent.

Global oil benchmark Brent crude futures declined 0.92 per cent to $80.91 per barrel.

On the Indian equity market front, BSE Sensex was trading 86.9 points or 0.15 per cent higher at 59,741.96 points while the broader NSE Nifty advanced 28.95 points or 0.16 per cent to 17,653 points.

Forex traders said significant foreign fund outflows also dented investor sentiments and weighed on the rupee.

Foreign institutional investors were net sellers in the capital on Fridays as they offloaded shares worth Rs21.16 billion, as per exchange data.

“Overall, the widening trade deficit, low forward premium, and expectations of a couple of more hikes by the US Fed will keep the rupee’s momentum on the depreciating side,” said Amit Pabari, managing director, CR Forex Advisors.

(With inputs from PTI)

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