Dubai: Indian rupee is coming under fresh pressure and is now at 20.81 to the dirham - its lowest ever. All through the morning trading, the currency had been in the 20.76-20.78 range.
It remains to be seen whether the Indian government will now try and exert direct influence not to let the rupee slide any further.
In recent weeks, the rupee had breached new lows, first dropping below 75 to one dollar and then to 76.
The official exchange rate at UAE remittance houses is yet reflect the drop in rupee – it’s still at the 20.67 to a dirham level.
Since the start of the month, rupee remittances from the UAE had been on the slower side. The COVID-19 imposed restrictions played a part, as did the sentiments among expat Indians in the UAE to hold on to their dirhams to tide over any cashflow concerns they may have in the coming weeks.
“Markets are witnessing great uncertainty because of the ongoing social crisis, arising from the COVID-19 pandemic,” said Adeeb Ahamed, Managing Director at LuLu Financial Group. “In this regard, although most currencies are experiencing fluctuation, the rupee is actually faring better than most other currencies if you look at recent trends.
“The rupee has managed to hold its own and we expect it to settle between 20.50 and 20.91 this week, against the dirham.”
If it settles anywhere above 20.80, that would still be a positive for Indian expats here. Provided they are in the mood to send remittances back home.