UAE dirham hits INR26 mark as Indian rupee crashes to record low

Dubai: The Indian rupee fell to its weakest level ever against the US dollar on Friday, pushing the UAE dirham above the INR26 mark for the first time ever, boosting the value of remittances being sent home from the Gulf.

During intraday trading, the rupee slipped below the crucial 96 level against the US dollar for the first time ever, touching a record low of 96.14 after opening at 95.86 in the interbank foreign exchange market.

At current exchange levels, Dh1 is now worth around Rs26.15, reflecting the rupee’s sharp decline against the dollar-pegged UAE dirham.

The currency had already weakened to a then-record low of 95.96 on Thursday before recovering slightly to close at 95.64 against the dollar.

Rising crude prices

According to an Economic Times report, forex traders said the rupee remains under heavy pressure from rising crude oil prices, a stronger US dollar and hawkish comments from US policymakers.

The report said persistent outflows of foreign capital and weak foreign direct investment inflows are also weighing on India’s balance of payments.

Brent crude oil prices climbed 3.20 per cent to $109.20 a barrel in futures trading on Friday, adding to concerns over India’s import bill. India imports the majority of its oil requirements, meaning higher crude prices can put further pressure on the country’s currency and trade balance.

The report also pointed to ongoing global uncertainties, relatively high market valuations and the absence of strong AI-led investment opportunities as factors affecting foreign capital flows into India.