UAE: Indian rupee rises 5 paise against dirham in early trade

The rupee appreciated 5 paise to 83.25 against the US dollar (Dh22.68) in morning trade on Thursday, as the crude oil price and the American currency retreated from their elevated levels.

However, a muted trend in domestic equities and sustained foreign fund inflows weighed on the investor sentiments. At the interbank foreign exchange, the rupee opened at 83.25, higher by 5 paise over its previous close.

Brent crude on Wednesday fell below $80 a barrel for the first time since around mid-July on concerns over waning demand in the U.S. and China. Brent is now down nearly 12% since last Monday, a relief for a major oil importer like India.

The 10-year U.S. yield dropped below 4.50%, reaching the lowest in more than a month and is now down more than 50 basis points from its recent high.

The Federal Reserve nearing a pause in its rate hiking cycle and weaker-than-expected U.S. data has prompted investors to lap up Treasuries.

Fed Chair Powell on Wednesday did not comment on monetary policy or economic outlook in prepared remarks. He will be speaking once again on Thursday.

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