Indian rupee drops to lowest point – 20.40 – against dirham for this month ahead of Feb remittances

Indian rupee drops to lowest point – 20.40 – against dirham for this month ahead of Feb remittances

Dubai: The Indian rupee has dropped to its lowest point this month, as emerging market currencies again feel the impact from the US signalling a rate hike in March. Early on Thursday, the rupee is at 20.35-20.46 levels to a dirham, with analysts talking about a drop to 20.60-20.70 levels. The official rupee-dirham exchange rate was at 20.29 to a dirham at Wednesday’s close. The latest rupee weakness opens a remittance window for Indian expats in the UAE as they await their January salaries. Plus, there is also the Indian federal budget to be announced on February 1, which could trigger its own dynamics on the rupee’s short-term movements. “The next level Indian expats will be waiting for is 20.60 to the dirham – the signs are there as global currencies are weakening and the dollar index gaining after the US Federal reiterated its rate stance on Wednesday,” said Antony Jos, Managing Director at Joyalukkas Exchange. (The dollar early Thursday is at the 75.19 level, and expected to move up to 76.05 short-term.) More than the Fed, the February 1 budget will likely have more of a say in determining the rupee’s prospects. Current levels are seen as favourable to