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Indian rupee rises 6 paise against dirham in early trade

Forex traders said falling domestic inflation, rise in industrial production figures and improvement in trade deficit aided the local unit

Published: Mon 16 Oct 2023, 9:51 AM

Updated: Mon 16 Oct 2023, 9:55 AM

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Photo: Reuters

Photo: Reuters

The rupee appreciated by 6 paise to 83.24 against the US dollar (UAE dirham 23.13) in early trade on Monday supported by positive macro economic data.

Forex traders said falling domestic inflation, rise in industrial production figures and improvement in trade deficit aided the local unit.


However, geopolitical tensions, particularly the Israel-Hamas conflict, dented investor sentiments.

[Editor's Note: For real-time forex rate, click the widget below or visit KT's dedicated Trading News page here.]

Brent crude was at $90.88 in Asia after soaring nearly 6 per cent on Friday — its biggest advance since April — on Israeli military beginning the first ground raids into the Gaza Strip. US equities declined on Friday when the dollar index edged up while safe-haven demand pushed US Treasury yields down.

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"Recent price action in oil suggests that the market remains nervous over the ongoing conflict," ING Bank said in a note.

The RBI has been regularly intervening in the spot over-the-counter and on NDFs to prevent the rupee from weakening below the 83.29 record low.

The one-month USD/INR pair had climbed to 83.50 in New York trading on Friday, but has since pulled back.

The focus for the rupee and other Asian currencies this week will be on the US data and comments by Federal Reserve officials. Investors will parse the data and comments to assess the chances of one more Fed rate hike this year.

US retail sales, industrial output and housing data are due this week.

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