Indian rupee drops against UAE dirham, weighed down by stronger dollar, subdued equity markets

Dollar was trading at an elevated level of 104 as a positive development on the US debt ceiling bill boosted investors' sentiment

Read more...
by

A Staff Reporter

Published: Wed 31 May 2023, 9:36 AM

Last updated: Wed 31 May 2023, 9:37 AM

The Indian rupee depreciated by 3 paise to 82.70 against the US dollar (22.53 against the UAE dirham) in early trade on Wednesday, tracking a strong American currency against major rivals overseas and subdued sentiments in equity markets.

Forex traders said the crude oil trading below $75 per barrel and inflows of foreign funds failed to support the Indian currency.

The dollar was trading at an elevated level of 104 as a positive development on the US debt ceiling bill boosted investors' sentiment. However, participants were also concerned about the payroll data to be released on Friday.

Advertising
Advertising

At the Indian interbank foreign exchange, the rupee opened weak at 82.71 against the dollar. The currency hit the lowest level of 82.73 and touched the peak of 82.68 before trading at 82.70, a fall of 3 paise over its previous close.

On Tuesday, the rupee closed at 82.67 against the US currency.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.14 per cent to 104.32.

Brent crude futures, the global oil benchmark, fell 0.26 per cent to $73.35 per barrel.

In the Indian equity market, the 30-share BSE Sensex declined 235.47 points or 0.37 per cent to 62,733.66. The broader NSE Nifty was down 76 points or 0.41 per cent to 18,557.85.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Tuesday as they purchased shares worth Rs20.85 billion, according to exchange data.

(With inputs from PTI)

ALSO READ:

A Staff Reporter

Published: Wed 31 May 2023, 9:36 AM

Last updated: Wed 31 May 2023, 9:37 AM

Recommended for you