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UAE: Indian rupee drops against dirham in early trade

It was a challenging session for Asian currencies overall because of weak China data and an uptick in US Treasury yields

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KT file photo

By Reuters

Published: Tue 5 Sep 2023, 10:35 AM

The Indian rupee was down on Tuesday, pressured by a fall in Asian peers and dollar buying by foreign banks.

The South Asian currency was last at 82.84 to the US dollar (22.57 against the UAE dirham), after closing at 82.7475 (22.55 against dirham) on Monday.

It opened at 82.78 (22.56) on Tuesday and touched an intraday low of 85.82 (23.38).

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[Editor's Note: For real-time forex rates, click the widget below or visit KT's dedicated Trading News page here.]

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"The demand (on USD/INR) is coming mostly from foreign banks. I assume it must be portfolio related outflow," a foreign exchange trader said.

"I do not see this (the outflow) much of an issue (for the rupee.) Expectations that the RBI( Reserve Bank of India) will be there means there is no risk of visiting 83," the trader said.

A few traders suspect that the RBI has been on the offer on USD/INR around the 82.80 levels.

"Obviously it's (the RBI's intervention) not aggressive. Just letting the market know that it is there."

It was a challenging session for Asian currencies overall because of weak China data and an uptick in US Treasury yields. The offshore yuan dropped to 7.2930 to the dollar after a private sector survey showed China's services activity expanded at the slowest pace in eight months in August.

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Reuters

Published: Tue 5 Sep 2023, 10:35 AM

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