Indian rupee opens higher versus the UAE dirham before the budget

Key takeaways: 

• The key to achieving both the stock market and bond market happiness is a theme that focuses on capex and fiscal consolidation.

The Indian rupee unlocked on a positive note and earned 12 paise to 81.76 versus the US dollar (22.27 against UAE dirham) in early exchange on Wednesday. Before the Indian budget announcement.

The Indian rupee opened up firm ahead of the budget: 

At the Indian interbank foreign trade, the South Asian currency was at 81.76 versus the dollar, recording a rise of 12 paise over its last close.

On Tuesday, the rupee declined by 36 paise to shut at a three-week low of 81.88 versus the US dollar. 

After the Economic Survey 2022-23 stated the rupee might remain under pressure because of the plateauing exports and following the widening of the current account deficit.

The dollar index, which measures the greenback’s power against a basket of six currencies, dropped 0.02 per cent to 102.08.

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Brent crude futures, the international oil benchmark, fell 0.48 per cent to $84.49 per cask.

The emphasis now will be on the government’s fiscal coalition path when it shows the Union Budget FY24. 

Investors will even eye the result of the Fed meeting later in the night, forex traders said.

“We present the Union Budget today. We think the key to creating both the stock market and bond market happy would be a theme concentrating on capex and fiscal unification,” IFA Global Research Academy stated in a note.