Indian rupee’s decline against UAE dirham continues

Indian rupee’s decline against UAE dirham continues

Russia-Ukraine tension, high inflation in India, fund outflows weigh on the rupee.

Published: Tue 15 Feb 2022, 9:49 AM

The Indian rupee declined 12 paise to 75.72 against the US dollar on Tuesday morning as geopolitical tension and higher inflation in India weighed on investor sentiments.

Forex traders said sustained foreign fund outflows and high oil prices also weakened the rupee position.

At the Indian interbank foreign exchange market, the rupee opened at 75.60 against the US currency, then slipped further to 75.72, registering a decline of 12 paise from the last close.

On Monday, the rupee slumped by 24 paise to close at an over nine-week low of 75.60 against the US currency.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.18 per cent to 96.19.

On the Indian macroeconomic front, the retail inflation rate breached the six per cent upper tolerance limit of the Reserve Bank of India for the first time in seven months in January, while the wholesale price index stayed in double digits for the 10th month in a row.

“Growing worries about Russia-Ukraine tensions and its impact on crude oil and possible higher global interest rates scenario could cap appreciation bias,” said Sriram Iyer,