Indian rupee sees volatility, drops against UAE dirham

It depreciated 15 paise to 80.93 against the US dollar in early trade on Monday, in line with a muted trend in the Indian equities

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A Staff Reporter

Published: Mon 14 Nov 2022, 9:37 AM

The Indian rupee witnessed heavy volatility in early trade on Monday and depreciated 15 paise to 80.93 against the US dollar (22.05 versus the UAE dirham) in line with a muted trend in the Indian equities.

At the Indian interbank foreign exchange, the rupee opened on a strong note at 80.53 against the dollar, then pared the gains to quote at 80.93, registering a loss of 15 paise over its previous close.

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On Friday, the rupee appreciated by 62 paise to close at 80.78 against the dollar (22.01 versus the UAE dirham).

“We expect the rupee to trade in the 80.40-80.70 range intra-day with appreciation bias. A test of 80.10 in this swing is possible. We are likely to see some more inflows till month end into domestic equities on MSCI index re-balancing,” IFA Global Research Academy said in a research note.

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Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.49 per cent to 106.80.

Brent crude futures, the global oil benchmark, rose 0.28 per cent to $96.26 per barrel.

In the Indian equity market, the 30-share BSE Sensex was trading 21.62 points or 0.03 per cent down at 61,773.42, and the broader NSE Nifty was trading up 19.80 points or 0.11 per cent to 18,369.50.

Foreign Institutional Investors (FIIs) were net buyers in capital markets as they purchased shares worth Rs39.58 billion on Friday, according to exchange data. Meanwhile, India’s foreign exchange reserves dropped by $1.087 billion to $529.994 billion in the week ended November 4 on a sharp decline in gold reserves, the Reserve Bank said on Friday.

(With inputs from PTI)

A Staff Reporter

Published: Mon 14 Nov 2022, 9:37 AM

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