Gains in equities lift Indian rupee against UAE dirham in early trade

Gains in equities lift Indian rupee against UAE dirham in early trade

A strong American currency overseas and forex outflows restricted the rupee’s gain

Published: Mon 18 Jul 2022, 9:36 AM

The Indian rupee appreciated six paise to 79.76 against the US dollar (21.73 versus the UAE dirham) in early trade on Monday as a positive trend in Indian equities supported the rupee.

However, a strong American currency overseas and forex outflows restricted the rupee’s gain, dealers said.

At the Indian interbank foreign exchange, the rupee opened at 79.76 against the American dollar, registering a gain of six paise over the last close.

In initial deals, the rupee witnessed an early high of 79.72 and a low of 79.81 against the American currency.

The rupee on Friday rebounded from the near-80 levels to close higher by 17 paise at 79.82 against the US currency.

“RBI (Reserve Bank of India) may protect the level of 80 for some more time before it can allow a break of the same. The trade deficit is very high for the rupee to sustain while importers/debt companies will keep buying dollars to pay off their payables,” said Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors.

Bhansali said: "Flows have not resumed and FPIs are still sellers in the stock market, though the intensity has