Indian rupee drops against UAE dirham in early trade

The dollar index rose 0.28 per cent to 109

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Published: Thu 1 Sep 2022, 10:22 AM

The Indian rupee depreciated by 14 paise to 79.66 against the US dollar (21.7 against the UAE dirham) in opening trade on Thursday, September 1, 2022, tracking the strength of the American currency overseas.

At the Indian interbank foreign exchange market, the rupee opened at 79.55 against the greenback, then fell further to 79.66, registering a decline of 14 paise over its last close.

The Indian forex markets were closed on Wednesday due to Ganesh Chaturthi.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.28 per cent to 109.

The rupee opened weaker against the dollar as prospects of further aggressive policy tightening by the US Federal Reserve and the European Central Bank (ECB) weighed on Asian currencies and equities, said Sriram Iyer, senior research analyst at Reliance Securities.

“Oil prices remained subdued this Thursday and could cap losses, but weak Asian and emerging market peers will cap gains,” Iyer said, adding the range for the rupee in this session is 79.30 to 79.75.

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The global oil benchmark Brent crude futures fell 2.84 per cent to $96.49 per barrel.

On the Indian equity market front, the 30-share BSE Sensex was trading 683.03 points or 1.15 per cent lower at 58,854.04, while the broader NSE Nifty was down 189.55 points or 1.07 per cent to 17,569.75.

Foreign institutional investors turned net buyers in the capital market on Tuesday as they purchased shares worth Rs41.65 billion, as per exchange data.

(With inputs from PTI)