NRI Alert: Indian rupee drops further against UAE dirham
On the Indian equity market front, the 30-share Sensex was trading at 59,932.14.
The Indian rupee depreciated by 20 paise to 74.54 against the US dollar (20.31 versus the UAE dirham) on Thursday morning, weighed down by a lacklustre trend in the Indian equity market and the firm American dollar.
At the Indian interbank foreign exchange, the rupee opened on a weak note at 74.44, then lost further ground and touched 74.54 against the dollar in initial deals, registering a decline of 20 paise from Wednesday’s close.
Reliance Securities said the rupee opened weaker tracking strengthening dollar and US bond yields. "Globally worries over inflation persist and will weigh on sentiments," it said in a note released on Thursday.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.10 per cent to 94.94.
The US dollar surged after US consumer prices increased to their highest rate since 1990, fuelling speculation that the Federal Reserve may raise interest rates sooner than expected, the Reliance Securities note said.
On the Indian equity market front, the 30-share Sensex was trading 420.68 points or 0.70 per cent lower at 59,932.14, while the broader NSE Nifty declined 129.50 points or 0.72 per cent to 17,887.70.
(with inputs from PTI)