Indian rupee recovers against UAE dirham in early trade

Firm American currency and concerns about the hawkish US Fed offset the support from positive Indian equities



by

A Staff Reporter

Published: Thu 15 Sep 2022, 9:44 AM

The Indian rupee witnessed range-bound trading in early trade on Thursday as a firm American currency and concerns about the hawkish US Fed offset the support from positive Indian equities.

At the Indian interbank foreign exchange, the rupee opened at 79.53 against the dollar, then touched 79.47 in initial deals, registering a gain of 5 paise over its previous close.

On Wednesday, the rupee declined by 35 paise to close at 79.52 against the US currency.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 109.72.

Brent crude futures, the global oil benchmark, fell 0.11 per cent to $94 per barrel.

In the Indian equity market, the 30-share BSE Sensex was trading 275.51 points or 0.46 per cent up at 60,622.48. Similarly, the broader NSE Nifty rose 36.15 points or 0.2 per cent to 18,039.90.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets, as they offloaded shares worth ₹13.97 billion on Wednesday, according to provisional data.

"Asian currencies are still on the weaker side against the dollar which will not allow the rupee to gain much against the dollar. The range for the day is expected between 79.30 to 79.80 as the market braces for a 75-basis point rate hike by Fed," said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.

(With inputs from PTI)

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