Indian rupee slips against UAE dirham on first trading day of the week

Strengthening of the American dollar in the overseas market also weighed on the South Asian currency

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A Staff Reporter

Published: Mon 17 Apr 2023, 9:12 AM

The Indian rupee depreciated 12 paise to 81.97 against the US dollar (22.33 against the UAE dirham) in early trade on Monday, weighed down by firm crude oil prices and a negative trend in the Indian equities.

Forex traders said the strengthening of the American currency in the overseas market also weighed on the South Asian currency. At the interbank foreign exchange, the rupee opened at 81.90 against the dollar, then fell to 81.97, registering a decline of 12 paise over its last close.

On Thursday, the rupee settled at 81.85 against the dollar. The Indian forex and equity markets were closed on Friday on account of Ambedkar Jayanti.

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The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.15 per cent to 101.70.

Brent crude futures, the global oil benchmark, advanced 0.08 per cent to $86.38 per barrel.

In the Indian equity market, the 30-share BSE Sensex was trading 740.8 points or 1.23 per cent lower at 59,690.20. The broader NSE Nifty declined 187.50 points or 1.05 per cent to 17,640.50.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Thursday as they purchased shares worth Rs2.21 billion, according to exchange data.

Traders said factors like global market sentiment, quarterly earnings, crude oil prices, movement in the US dollar and other currencies and lastly RBI's action will dictate terms for the rupee.

Meanwhile, India's forex reserves increased by $6.306 billion to $584.755 billion for the week ended April 7, the RBI said on Friday.

"...RBI has always piled up their FX reserves and forward book whenever the pair has tested multi-week or month lows. So, as long as RBI keeps on buying on dips and holds the 81.50 level, one can expect a reversal move towards 82.30-82.50 over the short-term," said Amit Pabari, managing director of CR Forex Advisors.

(With inputs from PTI)

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A Staff Reporter

Published: Mon 17 Apr 2023, 9:12 AM

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