In early trade on Thursday, the Indian rupee dropped 12 paise to 77.74 against the US dollar (21.18 against the UAE dirham), pulled down by a lacklustre trend in Indian stocks and continuous foreign money outflows.
Indian rupee continues to fall against the UAE dirham:
The rupee began at 77.72 versus the dollar on the Indian interbank foreign exchange before losing momentum to quote at 77.74, a drop of 12 paise from the previous close.
According to Sriram Iyer, senior research analyst at Reliance Securities, the rupee began lower versus the dollar on Thursday as global shares fell on fears that rising inflation and monetary policy tightening may spark an economic downturn.
According to Iyer, inflation, both worldwide and locally, will continue to put a burden on morale. Furthermore, international equity outflows will reduce the appreciation bias.
The dollar index gauges the greenback’s strength against a basket of six currencies was trading 0.15 per cent down at 103.65, reflecting increasing US yields and worries about higher interest rates. In Asian trade on Thursday morning, the US dollar sank marginally; however, the damage might be limited as weak US housing data adds to fears about a slowdown.
On the Indian stock exchange, the 30-share Sensex was down 936.86 points, or 1.73 per cent, at 53,271.67, while the wider NSE Nifty was down 284.80 points, or 1.75 per cent, at 15,955.50. Brent crude prices increased 1.37 per cent to $110.61 per barrel, the global standard.
