Indian rupee trades higher against UAE dirham in early trade

The Indian rupee appreciated seven paise to 79.84 against the US dollar (21.75 versus the UAE dirham) in early trade on Tuesday in line with a positive trend in the Indian equities.

However, higher oil prices and month-end dollar demand could restrict the gains for the local unit, forex traders said.

At the Indian interbank foreign exchange, the rupee opened at 79.92 against the American dollar and touched 79.84 in initial deals, registering a gain of 7 paise over the last close.

On Monday, the rupee closed at 79.91 against the US dollar.

The rupee opened on a flat note after Monday's volatile session in which the Reserve Bank of India (RBI) had intervened to support the currency amid a fall in equities and a rise in the dollar index, according to experts.

Asian currencies are generally down as the market digests US Federal Reserve chief Jerome Powells' hawkish tone on interest rates on Friday.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06 per cent to 108.76.

Global oil benchmark Brent crude futures fell 0.77 per cent to $104.28 per barrel.

On the Indian equity front, the 30-share Sensex was trading 485.2 points or 0.84 per cent higher at 58,457.82 points while the broader NSE Nifty advanced 154.10 points or 0.89 per cent to 17,467.00 points.

Foreign institutional investors remained net sellers in the capital market on Monday, offloading shares worth ₹5.61 billion, as per exchange data.

(with inputs from PTI)

ALSO READ:

• Dollar sags below 20-year peak as euro lifted by ECB bets

• Dollar touches 20-year high, but kept in check by euro, as rates in focus

• India
• Dubai