The External Affairs Minister said that he is travelling to Pakistan only to be a 'good member of the SCO'
asia4 hours ago
The Indian rupee, which has been under pressure last week due to coronavirus, a stock market crash and and the Yes Bank crisis, will depreciate further this week and could possibly hit 20.50 against the UAE dirham unless Reserve Bank of India (RBI) intervenes to prop up the currency.
The rupee, which hit 20.15 against the dirham (74.02 against the US dollar) on Friday, could cross its lowest mark of 20.24 against the UAE currency achieved in 2018, according to Rajiv Raipancholia, chief executive officer of Orient Exchange.
"This trend [of the rupee's decline] will continue in the coming week if the RBI does not intervene. We are looking at the rupee depreciating further and crossing the highest mark of 20.24 against the dirham in October 2018. It could possibly test 20.40 levels against the dirham [75 against the dollar]," said Raipancholia.
The rupee was trading at 20.16 versus the dirham late on Saturday, according to XE.com. It lost 2.6 per cent against the UAE currency last week.
"The rupee depreciated sharply by more than 2.5 per cent to hit a 17-month low [last] week as investor sentiments remained fragile amid escalating worries over the impact of the rapidly-spreading coronavirus globally," said Rahul Gupta, head of research for currency at Emkay Global Financial Services.
He said going forward, the market will have a closer eye on any possible intervention from the RBI or the government, adding that on the upside, the crucial resistance lies at 74.47 against the dollar - an all-time low - and if the rupee consistently trades above 74.47 then 75-75.50 versus the dollar (20.43-20.57 against the dirham) is expected.
Raipancholia blamed the stock market crash worldwide as a result of fear of coronavirus for the fall in the rupee's value. The 30-share BSE Sensex settled 893.99 points, or 2.32 per cent, lower at 37,576 while the NSE Nifty tanked 279.55 points, or 2.48 per cent, to close at 10,989 on Friday.
"The present level of the rupee-dollar is very attractive for fresh foreign inflows and interest rates in India are still comparatively higher than other countries. Therefore, the rupee could settle at 72 against the dollar [19.60 against the dirham] in the next couple of weeks after hitting the new lows. It also depends on what level will the RBI intervene," he concluded.
- waheedabbas@khaleejtimes.com
The External Affairs Minister said that he is travelling to Pakistan only to be a 'good member of the SCO'
asia4 hours ago
Sheikh Hamdan took to social media platform X to make the announcement on World Teachers' Day
visa and immigration in uae5 hours ago
These goods, which were seized by Customs, can be examined at Dubai Airports, Terminal 3
uae5 hours ago
He did not elaborate on the nature or timing of the response
mena5 hours ago
The Ministry of Finance said that these amendments reflect its ongoing commitment to enhancing transparency within the overall tax regime
business6 hours ago
Ahmed is the third UAE player to make the cut in the AAC, following Dubai-born Rayhan Thomas in 2018, who finished runner-up, and Ahmad Skaik (UAE) in 2021
sports6 hours ago
Travellers are also given discounts at different attractions and dining experiences across the city
life and living6 hours ago
Sheikh Mohamed was welcomed by Serbian President Aleksandar Vučić, along with other officials
world6 hours ago