UAE: Indian rupee strengthens against dirham in early trade

The Indian rupee opened stronger against the US dollar on Tuesday after it plunged to a 12-month low of 83.28 on Monday evening amid rising oil prices and uncertainty in global markets due to the ongoing Israel-Hamas war.

In early trade on Tuesday morning, the Indian currency strengthened six paise to open at 83.22 (Dh22.67) against the US dollar. It closed at Rs 83.28 against the US dollar on Monday.

Indian shares opened higher, led by banks after top lender HDFC Bank reported a net profit in the September quarter, while a rebound in global stocks and moderation in oil prices aided sentiment.

The NSE Nifty 50 index (.NSEI) was up 0.44% at 19,818.15 as of 9:19 a.m. IST, and the S&P BSE Sensex (.BSESN) rose 0.46% to 66,471.84.

Oil and dollar should "at the margin" provide relief for the rupee, but the Reserve Bank of India remains "the overwhelming factor" in the market, a forex trader at a Mumbai-based bank said.

The Indian central bank's regular intervention is preventing the rupee from weakening past its 83.29 record low and is holding the currency in a narrow range, according to traders.

Inputs from wires

ALSO READ:

• UAE: Gold prices drop; jewellery shoppers opt for 'lock-in' ahead of festivals

• UAE: New instant payment platform launched for digital transactions

• UAE’s outlook buoyant; fiscal, external surpluses remain high: IMF

• UAE non-oil growth gains added thrust: Opec

• Business
• India