Indian rupee posts strong gains against UAE dirham in early trade

The rupee gained 39 paise to 82.36 against the US dollar (22.44 against the UAE dirham) in early trade on Thursday as positive macroeconomic data strengthened investor sentiments.

At the Indian interbank foreign exchange, the rupee opened at 82.54 against the dollar and then rose to 82.36, registering a gain of 39 paise over its previous close. On Wednesday, the rupee closed at 82.75 against the US currency.

On the macroeconomic front, India’s fiscal deficit narrowed to 6.4 per cent of the GDP in 2022-23 from 6.71 per cent in FY22.

Unveiling the revenue-expenditure data of the federal government for 2022-23, the Controller General of Accounts (CGA) said the fiscal deficit in absolute terms was Rs 17,33,131 crore (provisional), marginally down from the amount projected in the Revised Estimates (RE) in the Budget.

Moreover, according to official figures released on Wednesday, India's economy grew by 6.1 per cent in the March quarter of 2022-23, pushing the annual growth rate to 7.2 per cent on account of better performance by agriculture, manufacturing, mining and construction sectors.

"The given economic releases suggest resilience of activity and hence will have a positive impact on the rupee. Though there are some caveats to this from the global front, such as Fed's return to a rate hike, geopolitical concerns, and the banking crisis," CR Forex Advisors MD-Amit Pabari said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09 per cent to 104.23.

Brent crude futures, the global oil benchmark, declined 1.20 per cent to $72.66 per barrel.

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