Dubai: The Indian rupee dropped for a fifth straight session of declines on Wednesday, and is expected to drop to 22.60 against the UAE dirham, so if you were planning to remit in the coming weeks, it's time to take advantage of these rates.
Down over 10 per cent against the US dollar this year, the rupee will trade at 82.5 per dollar in three months, according to the October 28 to November 1 Reuters poll of 26 forex analysts. For now, in the coming weeks, the currency is seen at around 81.50-81.55 per dollar, albeit largely steady compared to recent levels.
Any weakness or strength in the Indian currency'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. Check the latest forex rates here.
If the rupee hits 85 to a dollar by December, it would have lost 12.5 per cent this year - the steepest decline in a decade. While the Reserve Bank of India has stepped in regularly to smoothen the rupee's drop, analysts said the intervention is depleting the foreign exchange pile at a robust pace.
While it is difficult to explain the likely presence of RBI just near the 82 level, it further narrows the near-term range from the trading point of view, a spot trader at a foreign bank said. The rupee in the last two sessions has managed to turn around from the 81.80 to 81.90 levels, helped by dollar sales by state-run banks.
The Fed's minutes of the meeting will be scrutinised for discussions on the pace of future interest rate hikes. Fed Chair Jerome Powell following the November policy decision had said that while borrowing costs would need to rise further, the central bank might hike rates in smaller increments in the future.
- with inputs from Reuters
