Indian rupee falls against UAE dirham due to rising oil prices

Forex traders said the Indian rupee opened weak on the rise in oil prices and the dollar index

A Staff Reporter

Published: Mon 5 Jun 2023, 9:28 AM

The Indian rupee depreciated 14 paise to 82.53 against the US dollar (22.48 against the UAE dirham) in early trade on Monday, weighed down by the strength of the American currency and rising crude oil prices.

At the Indian interbank foreign exchange, the rupee opened at 82.47, then fell to 82.53, registering a decline of 14 paise over its last close.

On Friday, the rupee had settled at 82.39 against the dollar. Forex traders said the Indian rupee opened weak on the rise in oil prices and the dollar index.

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The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09 per cent to 104.10. Brent crude futures, the global oil benchmark, rose 1.17 per cent to $77.02 per barrel.

“Brent oil prices rose to $76.36 per barrel after Saudi Arabia announced a unilateral cut in oil production by 1 million barrels per day. The Asian currencies fell as the US dollar index rose," said Anil Kumar Bhansali, Head of Treasury Finrex Treasury Advisors LLP.

In the Indian equity market, the 30-share BSE Sensex was trading 230.95 points or 0.37 per cent higher at 62,778.06. The broader NSE Nifty advanced 52.45 points or 0.28 per cent to 18,586.55.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs6.59 billion, according to exchange data.

Meanwhile, India's forex reserves dropped by $4.339 billion to $589.138 billion for the week ended May 26, the Reserve Bank said on Friday. In the previous week, the reserves had declined by $6.052 billion to $593.477 billion.

(With inputs from PTI)

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