Indian Rupee Starts the Week Strong, Surging Against UAE Dirham

In early trade on Monday, the Indian rupee accumulated 24 paise to 81.78 against the US dollar and 22.8 against the UAE dirham showing a positive trend in the foreign fund and equities inflows.

Indian Rupee
Indian Rupee

At the Indian interbank foreign exchange, the rupee extended at 81.90 against the dollar and then jumped to 81.78, recording a hike of 24 paise over its last close. 

On Thursday, the rupee closed at 82.02 against the US currency, while on April 7, the equity and forex markets remained closed due to Good Friday. 

However, the dollar index, which estimates the firmness of the greenback against a hamper of six currencies, increased from 0.11 percent to 102.20. Besides, Brent crude futures, the global oil benchmark, decreased by 0.22 percent to $84.93 per barrel. 

The rupee remained unaffected after the meeting of Reserve Bank of India Monetary Policy. 

Amir Pabari, managing director of CR Forex Advisors, stated, ” The halt in the rate increase can further compress the interest rate differences between the Indians and the US and also can put pressure on the rupee. Moreover, the market will continue to check the development of rising Covid cases in India”. He added on April 9 that India reported around 5,357 new Covid cases, with active cases of around 32,000.

Pabari added that, Moreover, it has also been observed that RBI hardly keeps the dollar- rupee below 81.80- 81.50 levels. Hence this zone acts as a strong support for the pair. 

In the Indian equity market, the  30 shares of BSE Sensex progressed to 55.91 points or 0.09 percent to 59,888.88. The broader NSE Nifty increased to 22.25 points or 0.13 percent to 17, 621.40. 

According to the exchange data, Foreign Institutional Investors (FIIs) were the net buyers on Thursday’s capital market, as they bought shares worth Rs4.75 billion.

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