UAE: Indian rupee inches marginally against dirham in early trade

UAE: Indian rupee inches marginally against dirham in early trade

The Indian rupee gained 5 paise to 82.46 against the US dollar (Dh22.46) in early trade on Friday amid positive trends in equities markets. Forex traders said falling crude price and inflow of foreign fund in domestic equities markets also provided support to the Indian currency.

At the interbank foreign exchange, the domestic unit opened strong at 82.49 and touched the highest level of 82.45. According to a Reuters report, the Indian rupee is expected to struggle on Wednesday in the wake of the dollar index's move higher on weak risk appetite.

Non-deliverable forwards indicate rupee will open slightly weaker to the U.S. dollar from 82.8275 in the previous session.

"If you take into account the current level, it is to be expected that incremental moves higher (on USD/INR) will be quite slow and measured," a forex trader at a bank said.

"USD/INR longs, which we do not think are too many, may not like this measured pace, but will take comfort that 83 is just right there."

The rupee over the last couple of sessions has repeatedly taken support at around 82.80-82.85, which a few market participants reckon is due to the Reserve Bank of India's intervention.

The dollar index climbed 0.5% on Tuesday, helped