A customer counts Indian rupee banknotes at a jewellery store in Mumbai. Image Credit: Bloomberg

Highlights

  • Sending money home? If you're planning to remit money to India, your UAE dirham could probably send less money, as the US dollar has just fallen against the Asian currency
  • US dollar has weakened ahead of the announcement of a much-awaited policy decision on interest rates by the Federal Reserve
  • There are expectations that the panel would again hike the interest rates

Dubai: The Indian rupee continued to climb on Wednesday, hitting its highest rate in more than two weeks, as the US dollar fell close to one-week lows.

The Asian currency climbed another 50 paise to break the 70 per dollar level at the start of the trade, as the greenback weakened ahead of the US Federal Reserve policy decision on interest rates.

At 8:40am, the rupee climbed to a more than two-week high of 70.05 per dollar and 19.07 per UAE dirham, according to the data posted by currency platform XE.com.

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The Federal Open Market Committee is set to issue another policy decision on interest rates this week. There have been expectations that the panel will announce its fourth hike this year.

The rupee had earlier taken a serious beating from the greenback, plummeting to more than 20 against the UAE dirham in October and later recuperated to just above 19 per dirham.

While the Asian currency has recently recovered some of its losses, analysts said the currency could fall again and hit to as low as 27 per dirham.