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Indian rupee drops against UAE dirham

It depreciated to 78.80 against US dollar on Wednesday

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The Indian rupee slumped 68 paise to close at 79.21 against the US dollar (50 versus the UAE dirham) on Wednesday, as disappointing macroeconomic data weighed on investor sentiment.

At the interbank foreign exchange market, the local currency opened lower at 78.70 and fell further to settle at the day's low of 79.21.

On Tuesday, the rupee rallied 53 paise — its best single-day gain in over 11 months — to close at an over one-month high of 78.53 against the US dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07 per cent to 106.16.

Global oil benchmark Brent crude futures declined 0.42 per cent to $100.12 per barrel.

On the Indian equity market front, the 30-share Sensex was trading 86.44 points or 0.15 per cent lower at 58,049.92 points, while the broader NSE Nifty was down 55.10 points or 0.32 per cent to 17,290.35 points.

Experts said foreign portfolio investor (FPI) flows have turned around in the Indian equities and crude oil prices have also been steady.

This has reduced the pressure on the rupee. However, export data for July weighed on investor sentiment.

Foreign institutional investors remained net buyers in the capital market on Tuesday as they purchased shares worth Rs8.25 billion, as per exchange data.

India’s exports dipped, though marginally, for the first time in 17 months in July, while the trade deficit tripled to a record $31 billion, fuelled by over a 70 per cent rise in crude oil imports.

The July 2022 exports at $35.24 billion showed a decline of 0.76 per cent on an annual basis. The country’s merchandise exports stood at $35.51 billion in July 2021.

(With inputs from PTI)

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