Indian equity gains lift rupee against UAE dirham

Indian equity gains lift rupee against UAE dirham

The dollar index was trading 0.13% lower at 96.26.

Published: Wed 2 Feb 2022, 9:56 AM

The Indian rupee appreciated 11 paise to 74.71 against the US dollar (20.35 against the UAE dirham) in the opening trade on Wednesday, supported by positive Indian equities and weak American currency.

At the Indian interbank foreign exchange, the rupee opened at 74.76 against the dollar, then inched higher to quote 74.71, registering a rise of 11 paise from the last close.

On Tuesday, the rupee settled 17 paise lower at 74.82 against the US dollar as caution set in among forex market participants after the government revised fiscal deficit target upwards for FY22 in the budget.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.13 per cent lower at 96.26.

According to provisional data of the commerce ministry, the country’s exports rose by 23.69 per cent to $34.06 billion in January, on healthy performance by engineering, petroleum and gems and jewellery segments even as the trade deficit widened to $17.94 billion during the month.

The rupee surged this Wednesday as the weakness of the dollar could offset weak fiscal deficit projections from the government, said Sriram Iyer, Senior Research Analyst at Reliance