Indian rupee gains against UAE dirham in early trade

The Indian rupee gained 7 paise to 82.56 against the US dollar (22.49 against the UAE dirham) in early trade on Tuesday, tracking the weakness of the American currency in the overseas market.

The rupee was trading in a narrow range as market participants were vigilant ahead of the RBI's monetary policy later this week. The Reserve Bank of India (RBI) is expected to leave the repo rate unchanged at 6.5 per cent.

At the Indian interbank foreign exchange, the rupee opened at 82.56 against the dollar, registering a gain of 7 paise over its previous close.

On June 5, the rupee closed at 82.63 against the US currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 103.96.

Brent crude futures, the global oil benchmark, declined 0.20 per cent to $76.56 per barrel.

"The USD/INR pair has entered a consolidation phase and is likely to move within the 82.20-82.85 range for a couple of sessions," CR Forex Advisors MD Amit Pabari said.

Pabari added that flows on one side and weakening pressure from the peer currencies is likely to keep the pair tugged in a range.

• Indian rupee posts strong gains against UAE dirham in early trade