Indian rupee slips against UAE dirham as dollar gains in early trade

Indian rupee slips against UAE dirham as dollar gains in early trade

The Indian rupee depreciated four paise to 82.67 against the US dollar (22.52 versus the UAE dirham) in early trade on Tuesday, tracking a strong American currency against major rivals overseas.

Forex traders said downward movement in crude price and inflows of foreign funds, however, capped the fall in the Indian currency.

Meanwhile, the dollar strengthened as investors were upbeat on the tentative agreement between US President Joe Biden and Republican House Speaker Kevin McCarthy on the debt ceiling, which is likely to face voting on May 31 before getting sealed.

Traders were also keeping an eye on the US non-farm payroll (NFP) data to be released on June 2.

"Rupee traded in a narrow range and volatility remained low as most market participants remained on the sidelines following the US market holiday. On the other hand, the dollar was weighed down after preliminary talks between the Republicans and Democrats sailed through.

"Today, the focus will be on the consumer confidence number from the US and that is likely to trigger volatility for the dollar; more updates on the debt ceiling vote will also be important to watch. We expect the USDINR (Spot) to trade sideways and quote in the range of 82.40 and 82.80,"