Indian rupee falls against UAE dirham amid firm oil prices

Forex traders say foreign fund outflows, strengthening of the American currency in the overseas market dented investor sentiments

A Staff Reporter

Published: Wed 19 Apr 2023, 10:39 AM

The Indian rupee depreciated 7 paise to 82.11 against the US dollar (22.37 versus the UAE dirham) in early trade on Wednesday, weighed down by firm crude oil prices and a negative trend in the Indian equities.

Forex traders said foreign fund outflows and the strengthening of the American currency in the overseas market dented investor sentiments.

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At the Indian interbank foreign exchange, the rupee opened weak at 82.10 against the dollar, then fell to 82.11, registering a decline of 7 paise over its last close.

On Tuesday, the rupee settled at 82.04 against the dollar.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.04 per cent to 101.78.

Brent crude futures, the global oil benchmark, declined 0.18 per cent to $84.62 per barrel.

The USDINR pair is holding well above the 82.00 mark and waiting for the fresh triggers to mark its move past 82.20 levels, said Amit Pabari, managing director, CR Forex Advisors.

Pabari further added that widening deficits, rising oil prices, and squeezing interest rate differentials between US and India set a floor for fresh rounds of outflows from the Indian bond market.

In the Indian equity market, the 30-share BSE Sensex was trading 71.9 points or 0.12 per cent lower at 59,655.11. The broader NSE Nifty declined 15.70 points or 0.09 per cent to 17,644.45.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Tuesday as they offloaded shares worth Rs8.1 billion, according to exchange data.

(With inputs from PTI)

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