Indian rupee strengthens further against UAE dirham

Indian rupee strengthens further against UAE dirham

Foreign fund inflows supported the South Asian currency

Published: Thu 13 Apr 2023, 9:20 AM

The Indian rupee gained 18 paise to 81.93 against the US dollar (22.32 against the UAE dirham) in early trade on Thursday tracking the broad weakness of the American currency in the overseas market.

Forex traders said foreign fund inflows also supported the South Asian currency. At the Indian interbank foreign exchange, the rupee opened at 81.99 against the dollar, then climbed to 81.93, registering a rise of 18 paise over its previous close.

On Wednesday, the rupee closed at 82.11 against the US currency.

"Overall USDINR has strong support around 81.75-80 levels, as the RBI is intervening to protect from steep appreciation. Adding to it, the ongoing geopolitical concerns and Fed's hiking process are likely to weigh on investor sentiment and the USDINR could bounce back to 82.50-82.80 levels," said Amit Pabari, managing director, CR Forex Advisors.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 101.55.

Brent crude futures, the global oil benchmark, declined 0.22 per cent to $87.14 per barrel.

"Brent has risen to $87.25 per barrel as weak US CPI could mean that the Fed could sound less