Indian rupee gains against UAE dirham in early trade

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The Indian rupee appreciated 14 paise to 81.65 against the US dollar (22.24 versus the UAE dirham) in early trade on Tuesday as the American currency retreated from its elevated levels.

Forex traders said foreign fund outflows and a muted trend in Indian equities weighed on the rupee and restricted the appreciation bias.

At the Indian interbank foreign exchange, the rupee opened at 81.72 against the dollar, then gained further ground to touch 81.65, registering a rise of 14 paise over its previous close.

On Monday, the rupee depreciated by 5 paise to close at 81.79 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.24 per cent to 107.57.

Experts believe the Indian rupee is expected to trade in a range-bound manner amid tracking strength of the American currency and cautiousness in the markets, as fears of a return to stricter Covid restriction measures in China weighed on Asian currencies.

Brent crude futures, the global oil benchmark, advanced 0.50 per cent to $87.89 per barrel.

In the Indian equity market, the 30-share BSE Sensex was trading 52.74 points or 0.09 per cent higher at 61,197.58. The broader NSE Nifty rose 13.25 points or 0.07 per cent to 18,173.20.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs15.93 billion, according to exchange data.

(With inputs from PTI)