Indian rupee gains against UAE dirham in early trade

The Indian rupee appreciated 19 paise to 76.45 against the US dollar (20.83 against the UAE dirham) in opening trade on Tuesday, tracking positive trends among Asian and emerging market currencies.

At the Indian interbank foreign exchange, the rupee opened at 76.48 against the American dollar, then gained further ground to quote at 76.45, registering a rise of 19 paise from the last close.

On Monday, the rupee declined by 22 paise to close at 76.64 against the US dollar.

The rupee opened stronger against the US dollar this Tuesday as US bond yields and the dollar eased from their elevated levels, said Sriram Iyer, Senior Research Analyst at Reliance Securities.

Moreover, Asian and emerging market peers were slightly stronger on Tuesday, while a small recovery in the Asian equities could aid sentiments, Iyer added.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.21 per cent lower at 101.54.

"The US dollar has started flat to marginally weaker this early Tuesday morning in Asian trade tracking a slightly weaker bond yield. However, the downside could be capped on fears about the economic impact of China's Covid-19 lockdowns and an aggressive pace of US rate hikes," Iyer noted.

On the Indian equity market front, the 30-share Sensex was trading 706.63 points or 1.25 per cent higher at 57,286.52 points, while the broader NSE Nifty advanced 206.65 points or 1.22 per cent to 17,160.60.

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(with inputs from PTI)

• Dubai