Indian rupee plunges against UAE dirham as dollar demand grows amid Russia-Ukraine tension

Indian rupee plunges against UAE dirham as dollar demand grows amid Russia-Ukraine tension

Muted Indian equities, high crude prices also weigh on the rupee

Published: Mon 14 Feb 2022, 9:42 AM

The Indian rupee declined 20 paise to 75.56 against the US dollar (20.58 versus the UAE dirham) in opening trade on Monday, amid geopolitical tensions pushing investors to the safe-haven appeal of the greenback.

Forex traders said muted Indian equities and elevated crude oil prices weighed on the rupee.

At the Indian interbank foreign exchange, the rupee opened at 75.53 against the US dollar, then slipped further to 75.56, registering a decline of 20 paise from the last close.

On Friday, the rupee had plunged by 21 paise to a nearly seven-week low of 75.36 against the US currency on forex outflows and a strong dollar after a spike in inflation in the US boosted expectations of an aggressive rate hike by the Federal Reserve.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.03 per cent to 96.05. Meanwhile, global oil benchmark Brent crude futures rose by 1.09 per cent to $95.47 per barrel.

"The US and Britain advised their nationals to leave Ukraine as Russia has massed enough troops near Ukraine to launch a major invasion. This could push