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Indian rupee inches higher as oil prices drop

Dubai - Lower oil prices supported the currency on Tuesday.

The Indian rupee inched higher by three paise on Tuesday morning to trade at 72.77 against the US dollar (19.82 versus the UAE dirham).

Subdued equity markets also weighed on the South Asian currency but lower oil prices supported rupee on Tuesday.

The US dollar index, which gauges the greenback’s strength against a basket of six currencies, surged 0.13 per cent to 90.05.

On the domestic equity market front, BSE Sensex was trading 104.44 points or 0.20 per cent lower at 52,224.07, while the broader NSE Nifty slipped 50.35 points or 0.32 per cent to 15,701.30.

Global oil benchmark Brent crude futures declined 0.88 per cent to $70.86 per barrel. Drop in crude prices reflects positively on the Indian economy, as it reduces the import bill for the South Asian country, which is heavily dependent on oil imports.

Foreign institutional investors were net sellers in the capital market on Monday, as they sold shares worth Rs186.46 crore, as per exchange data.

India reported less than one lakh new coronavirus infections after a gap of 63 days, while the daily positivity rate dropped to 4.62 per cent.