NRI alert: Indian rupee falls to a new all-time low against UAE dirham

NRI alert: Indian rupee falls to a new all-time low against UAE dirham

Negative trend in the Indian equities and firm American currency sapped investor appetite, forex traders say

Published: Mon 10 Oct 2022, 8:50 AM

The Indian rupee depreciated 39 paise to an all-time low of 82.69 against the US dollar (22.53 versus the UAE dirham) in early trade on Monday as elevated crude oil prices and risk-averse sentiment among investors weighed on the rupee.

Moreover, a negative trend in the Indian equities and firm American currency sapped investor appetite, forex traders said.

At the Indian interbank foreign exchange, the rupee opened at 82.68 against the greenback, then slipped further to 82.69, registering a fall of 39 paise over its previous close.

On Friday, the rupee depreciated further by 13 paise to hit a new lifetime closing low of 82.30 against the US dollar.

“The double whammy of higher US rates and higher crude prices is back to haunt the rupee. While the RBI (Reserve Bank of India) was able to defend the rupee successfully through the last round of simultaneous stress on current and capital accounts by spending its reserves, this time around things are likely to be different,” IFA Global Research Academy said in a note.

India’s forex reserves dropped by $4.854 billion to $532.664 billion as