Indian rupee slips against UAE dirham after big gains in previous session

Currency weakened against US dollar as market awaits RBI's monetary policy decision

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A Staff Reporter

Published: Thu 6 Apr 2023, 9:58 AM

Last updated: Thu 6 Apr 2023, 10:12 AM

The Indian rupee depreciated by 5 paise to 81.95 against the US dollar (22.32 against the UAE dirham) in early trade on Thursday.

At the Indian interbank foreign exchange, the rupee opened weak at 81.95 against the dollar, registering a decline of 5 paise over its last close.

In initial trade, the local unit also saw a high of 81.88 against the greenback.

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On Wednesday, the rupee gained 42 paise to close at 81.90 against the US dollar.

“Today, the RBI would release its monetary policy outcome, which will turn the eyeballs on the rupee as markets have already factored in a 25-basis point rate hike by the RBI,” said Amit Pabari, managing director, CR Forex Advisors.

The Reserve Bank of India’s rate-setting panel on Monday started its three-day meeting amid expectations that the central bank may go for a 25 basis point hike in benchmark interest rate, probably the last in the current monetary tightening cycle that began in May 2022.

Pabari further noted that Reserve Bank Governor Shaktikanta Das-headed Monetary Policy Committee would maintain its option to hike via continuing its ‘withdrawal of accommodative’ stance and holding on to its tightening policy.

“However, if the RBI Governor hints at a pause in interest rates going further or he surprises with a lesser rate hike in his speech it would hurt the local unit,” he said.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.16 per cent to 102.01.

Brent crude futures, the global oil benchmark, declined 0.92 per cent to $84.21 per barrel.

In the Indian equity market, the 30-share BSE Sensex was trading 89.46 points or 0.15 per cent lower at 59,599.85 points. The broader NSE Nifty declined 22.45 points or 0.13 per cent to 17,534.60 points.

(With inputs from PTI)

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A Staff Reporter

Published: Thu 6 Apr 2023, 9:58 AM

Last updated: Thu 6 Apr 2023, 10:12 AM

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