Indian rupee firms up to 21.52/Dh as RBI hikes rate by another 0.50%

Indian rupee firms up to 21.52/Dh as RBI hikes rate by another 0.50%

Dubai: The Indian rupee is holding slightly higher at 20.52 to the dirham, with the central bank announcing a 0.50 per cent rate hike - its third since April. The latest comes on top of the 1.30 per cent rise since May and takes the Indian repo rate to 5.4 per cent. The rupee, which had firmed up in the morning, is holding steady in the 21.52-21.55 range. Indian expats in the UAE will have some waiting and watching to do over the next few days. The latest rate hike – meant to curb inflation that has crossed 6 per cent – could mean the rupee firming up to the dollar/dirham. The last four days have shown glimpses of what could be in the offing – the rupee had strengthened to 21.42 on August 2 and then went on to slip to 20.65/20.70 levels on August 4. “Even if a rate hike raises rupee’s strength, there are other factors in play – Taiwan, Ukraine, inflation and recession talk – that could weigh it down,” said a treasury analyst in Dubai. “UAE Indian expats need to time their next remittance only after checking all trends in the next three, four days.”