Time to remit: Indian rupee strengthens vs dirham as dollar inflow rises

Dubai - Rupee trading at Dh19.72 on Monday morning, it could hit Dh19.68 this week.

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By Web Report/IANS

Published: Mon 22 Mar 2021, 9:44 AM

Last updated: Mon 22 Mar 2021, 10:17 AM

The Indian rupee gained 6 paise to 72.46 against US dollar in early trade on Monday morning.

Against the UAE dirham, the Indian currency was trading at 19.72 on Monday morning.

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The rupee has been boosted by $2.4 billion of overseas purchase of Indian stocks, including inflows related to initial public offerings at the Indian bourses last week.

The rupee has been strengthening since April 22, 2020, when it was trading at 21.07 against the UAE dirham. It has gained 6.4 per cent since then.


Rupee to strengthen further

Sustained foreign inflows along with a slew of upcoming IPOs is expected to strengthen the Indian rupee during this week.

Accordingly, these factors are expected to push the rupee beyond its current 52 week high mark. This might lead RBI to absorb dollars to keep the rupee in check.

"Rupee hasn't shown any signs of weakness. Large inflows on the back of numerous bunched up IPOs in March have helped the local currency. Rupee has now emerged as the best performing currency in the last 1 month. Rising yields and inflation remain the key risk for the currencies," Sajal Gupta, Head, Forex and Rates at Edelweiss Securities told IANS.

"Next week's range is expected from 72.40 (Dh19.72) to 72.80 (Dh19.83)."

"Huge line up of IPOs, robust FPI inflows on account of rejig in international index weights, international debt fund raising by corporate is supporting the rupee," said Devarsh Vakil - Deputy Head of Retail Research at HDFC Securities.

"We expect the rupee to strengthen and attempt to surpass 52 week highs of 72.26 (Dh 19.68) this week. At that point of time, RBI will intervene and absorb dollars near 72 levels and will stop it from appreciating further. On the downside, 73.6 will remain a strong barrier for a few weeks," he said.

Photo: Reuters
Web Report/IANS

Published: Mon 22 Mar 2021, 9:44 AM

Last updated: Mon 22 Mar 2021, 10:17 AM

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