Indian rupee slips against UAE dirham as oil prices weigh high

The Indian rupee weakened by 11 paise to 82.73 against the US dollar (22.54 versus the UAE dirham) in early trade on Tuesday, as a sell-off in Indian equities and rising crude prices in global markets weighed on the South Asian currency.

However, a weak greenback against major rivals supported the rupee and restricted the fall, forex traders said.

At the Indian interbank foreign exchange, the rupee opened weak at 82.69 against the dollar, then lost ground further to 82.73, registering a decline of 11 paise over its previous close.

The rupee settled 13 paise higher at 82.62 against the dollar in the previous session on Monday.

In the Indian equity market, the 30-share BSE Sensex was trading 303.59 points or 0.49 per cent lower at 61,502.60, and the broader NSE Nifty slipped 95.85 points or 0.52 per cent to 18,324.60.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.37 per cent to 104.33.

Brent crude futures, the global oil benchmark, rose 0.89 per cent to $80.51 per barrel.

Foreign institutional investors were net sellers in the capital market on Monday as they sold shares worth Rs5.38 billion, as per exchange data.

(With inputs from PTI)

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