UAE: Indian rupee slips further against dirham in early trade

Dollar advances as US economic resilience trumps fiscal uncertainty

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Indian Rupee notes are seen in this picture illustration. Photo: Reuters

By Web Desk

Published: Thu 3 Aug 2023, 10:15 AM

As the market opened on Thursday, the Indian rupee faced further depreciation against the UAE dirham, slipping to around Dh22.47 ($82.7), compared to the range of 22.43-22.44 on the previous day (Wednesday).

The rupee's recent decline comes after it experienced its most substantial single-day loss in almost two months on August 2. According to Economic Times, the depreciation was attributed to a combination of factors, including a weak risk appetite among investors and increased demand for the US dollar from importers.

The dollar hit a four-week top against its major peers on Thursday, shrugging off a U.S. credit rating downgrade that cast doubt on the country's fiscal outlook, and instead got a leg up from strong private payrolls data.

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Data out on Wednesday showed U.S. private payrolls rose more than expected in July, boosting the dollar as it pointed to continued labour market resilience.

That pushed the Aussie to a two-month low in Asian trade and against the yen, the greenback hit its highest since July 7.

The euro fell 0.09% to $1.0928, while the U.S. dollar index scaled a four-week peak of 102.82, extending the previous session's 0.5% gain.

Inputs from Reuters

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Web Desk

Published: Thu 3 Aug 2023, 10:15 AM

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