Indian rupee jumps against UAE dirham on first trading day of the week

The Indian rupee gained 24 paise to 81.78 against the US dollar (22.28 against the UAE dirham) in early trade on Monday tracking a positive trend in equities and foreign fund inflows.

At the Indian interbank foreign exchange, the rupee opened at 81.90 against the dollar, then climbed to 81.78, registering a rise of 24 paise over its previous close.

On Thursday, the rupee closed at 82.02 against the US currency. On April 7, equity and forex markets were closed on account of Good Friday.

“The pause in the rate hike could further squeeze down the interest rate differential between the US and India and could put pressure on the rupee. Moreover, the market will continue to check the development of rising Covid cases in India,” Amit Pabari, managing director of CR Forex Advisors, said adding that on April 9, India reported 5,357 new Covid cases, with an active caseload of 32,000.

Additionally, it has been observed that RBI hardly keeps the dollar-rupee below 81.80-81.50 levels, so this zone should act as a strong support for the pair, Pabari added.

In the Indian equity market, the 30-share BSE Sensex advanced 55.91 points or 0.09 per cent to 59,888.88. The broader NSE Nifty gained 22.25 points or 0.13 per cent to 17,621.40.

Foreign Institutional Investors (FIIs) were net buyers in the capital market on Thursday as they purchased shares worth Rs4.75 billion, according to exchange data.

(With inputs from PTI)