Indian rupee turns flat against UAE dirham on Wednesday

The Indian rupee turned flat at 82.89 (Dh22.58) against the US dollar in early trade on Wednesday, resisting pressure amid unabated outflow of foreign funds and increased month-end demand of the American currency.

According to forex analysts, crude oil prices hovering above $83 per barrel also weighed on the domestic currency, however, positive equity markets provided cushion and capped a steep fall in the rupee.

Investors were also awaiting cues from US GDP data to be released later in the day and domestic GDP (Gross Domestic Product) numbers later this week, they said. At the interbank foreign exchange, the local currency opened at 82.90 and then inched up to trade at the previous day's closing level of 82.89 against the greenback.

Stay up to date with the latest news. Follow KT on WhatsApp Channels.

On Tuesday, the rupee settled 1 paisa lower at 82.89 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.09 per cent higher at 103.92.

Gaurang Somaiya, forex and bullion analyst Motilal Oswal Financial Services, said the dollar index traded neutral against its peers after the US data showed the consumer confidence index for February dropped lower than anticipated. Also, the data on durable goods orders revealed a contraction.

"Currently, Fed watch tool suggests that market participants are pricing rate cuts to begin no time before June, and the upcoming core PCE (Personal Consumption Expenditures) price index tomorrow and GDP figures today will be heavily watched for," he said, adding that the USD-INR (Spot) is expected to trade "sideways and quote in the range of 82.80-83.20".

• Dubai: Parkin IPO to offer good returns on consistent parking demand