Indian rupee
Indian expats will wait to see if the latest round of rupee weakness will see it drop to 20.60 levels. Image Credit: Shutterstock

Dubai: The currency markets were fearing a bloodbath and that’s exactly what they were getting, with major currencies slipping against the dollar after the Russian moves against Ukraine.

The Indian rupee came under immediate pressure once the reports poured in about the attacks happening inside Ukraine. The currency slipped to Rs20.45 to a dirham and looks likely to drop to Rs20.52-Rs20.55 if the conflict intensifies.

“The rupee had been under relative stability in recent days, but today is a wholly different situation,” said a senior analyst at LuLu Exchange. “Remittance volumes have dropped sharply because everyone seems to be thinking that the rupee will weaken further.”

In mid-December last, the rupee had dropped to Rs20.73 to the dirham, and the lowest ever point has been the Rs20.88 in late April of 2020.

On Thursday, there were currency exchanges happening, but there were primarily for the UK pound, the euro and the Canadian dollar. The dollar index – which tracks the greenback against a basket of key international currencies – is up 0.85 per cent to 97.011, indicating dollar’s gains as the Russia-Ukraine crisis unfolds.

“The UK pound, for instance, fetches 1.342 to the dollar against 1.36 in the last few days – it’s dollar asserting itself again when there is a crisis of this magnitude is around,” said the LuLu Exchange official.

The Pakistan rupee, however, has gone through a relatively minor change Thu currency is trading 47.85-48.06 to the dirham, still some way from the 48.81 it had dropped to on December 19.