Dubai: The Indian and Pakistani currencies are expected to remain weak this week amidst a combination of negative global cues as well as domestic factors at play, proving favourable for UAE expats looking to remit more money back home.
Against the UAE dirham, the value of the Indian rupee was at 21.23 on Monday, dropping in value from prior session's 21.11. The Pakistani currency held steady at 57.11, but depreciated from yesterday's 56.6. Check the latest forex rates here.
Dubai-based forex analysts evaluate that both the currencies are expected to stay at the current level against the US dollar and UAE dirham in the coming days. Weakness in the rupee's value against the US dollar will be automatically reflected in its exchange rate with the UAE dirham as the UAE currency is pegged to the dollar.
Indian rupee weakness worsens
The Indian rupee's depreciation is seen impacting the economy and various segments such as fuel prices, while pushing up inflation.
However, the central bank Reserve Bank of India (RBI) is likely to intervene in the forex exchange market to support the rupee and prevent any sharp depreciation in the exchange rate. It raised interest rate by 0.5 per cent last week, its second hike by the central bank since May.
On Monday, the Indian rupee slipped to 78 per US dollar amidst a resurgence in strength in the dollar primarily on account of expectations of a more aggressive policy tightening by the US.
Pakistani rupee dipping too
The exchange rate of the Pakistani rupee had weakened by Rs1.07 against the US dollar in the interbank trading on Friday and closed at Rs208.74 against the previous day's closing of Rs207.67.
According to the Forex Association of Pakistan (FAP), the buying and selling rates of dollar in the open market were recorded at Rs209 and Rs211 respectively. The exchange rates of UAE dirham and Saudi riyal, versus the Pakistani rupee, increased by 30 paisas to close at Rs56.83 and Rs55.63 respectively.
Similarly, the price of the euro appreciated by Rs3.60 and closed at Rs219.58 against last closing of Rs215.98, while the Japanese yen gained one Pakistani paisa to close at Rs 1.56, whereas an increase of Rs5.04 was witnessed in the exchange rate of British pound, which traded at Rs256.75 as compared to its last closing of Rs251.52.