UAE: Indian rupee up marginally against dirham in early trade

Investors are awaiting the GDP data for the first quarter of the current fiscal year, which will be released later in the day

Published: Thu 31 Aug 2023, 10:04 AM

By
Web Desk

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The Indian rupee traded in a narrow range and appreciated by 1 paise to 82.62 against the US dollar (22.51 against the UAE dirham) in early trade on Thursday amid a positive trend in the domestic equity market.

The outflow of foreign funds and relatively higher crude prices weighed on the South Asian currency, according to forex traders.

It was trading at 82.65 to the dollar (22.52 against dirham) at around 9.45am, UAE time

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Investors are also awaiting the GDP data for the first quarter of the current fiscal year which will be released later in the day.

Experts said they were expecting a dip as the South Asian currency has not been able to hold onto its opening gains in each of the last three sessions. It dropped to 82.80 on Wednesday.

Based on the recent price action and the modest moves on Asian currencies, "it will be no surprise" if the Indian rupee struggles after the opening gains, a forex trader at a Mumbai-based bank said.

Asian currencies were up 0.1 per cent to 0.2 per cent after the dollar index fell for the third straight day on Wednesday to reach a two-week low.

The dollar index dropped to near 103 and US Treasury retreated after weaker-than-expected growth and labour market data lowered expectations that the Federal Reserve will raise interest rates further.

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