The Indian Rupee is Losing Ground Against the UAE Dirham, Hovering Around a Lifetime low

Investor morale is weighed down by high crude oil prices and ongoing foreign capital outflows.

In early trade on Thursday, the Indian rupee fell 10 paise to 77.78 against the US dollar (21.19 against the UAE dirham), as rising crude oil prices and continued foreign capital outflows weighed on investor confidence.

The rupee opened at 77.74 versus the dollar on the Indian interbank foreign exchange, before losing ground to quote at 77.78, a drop of 10 paise from the previous close.

The rupee recovered from its record low against the dollar on Wednesday, closing 10 paise higher at 77.68.

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The rupee is lingering around its all-time low of 77.78 against the US dollar, tracking the dollar’s strength in the international market and rising crude oil prices.

The Indian Rupee is Losing Ground Against the UAE Dirham
The Indian Rupee is Losing Ground Against the UAE Dirham

According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the rupee opened on a pessimistic note as crude oil surpassed $125 per barrel.

“The rupee is supported by only the Reserve Bank of India (RBI), as foreign exchange flows have dried up completely. Foreign Portfolio Investors (FPIs) continue to sell stocks while buying the US dollar “According to Bhansali.

Furthermore, Asian currencies are trading on a negative note, according to Bhansali, who also stated that a rate hike by the RBI on Wednesday will have “no influence on the rupee” because “dollar buyers are in abundance.”

Brent crude prices increased 0.26% to $123.90 per barrel, the global standard.

In the meantime, the dollar index, which measures the strength of the greenback against a basket of six currencies, was down 0.01% at 102.52.

On Thursday morning, the 30-share Sensex was trading 163.34 points lower, or 0.30%, at 54,729.15, while the wider NSE Nifty was down 41.00 points, or 0.25%, at 16,315.25.

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