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In the Indian interbank market, the rupee opened at 73.48 against the dollar, then fell to 73.65.
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Foreign institutional investors were net sellers in the capital market on Monday.
Rupee trades at 19.90 versus the UAE dirham on Monday morning.
Rupee strengthens to 73.02 against the US dollar.
The Indian rupee continued its upward trajectory against the US dollar and the UAE dirham on Tuesday on the back of gains in the Indian equity markets.
The dollar index was down 0.07 per cent at 92.62.
Spot gold fell 0.48 per cent to $1,778.88 per ounce by 9.20 am UAE time.
At the Indian interbank market, the rupee opened strong at 74.30 against the dollar.
The rupee was trading at 20.23 versus UAE dirham on Tuesday morning.
In the Indian interbank market, the rupee opened at 74.43 against the dollar, then inched four paise higher to 74.39.