Dubai: Indian expats hoping to remit more money back home at the start of August, in exchange for lesser UAE dirhams, are in luck. A number of forex analysts foresee the rupee dropping to 22 against Dh1 early next month.
The value of the Indian rupee versus the UAE dirham was at 21.75 on Monday, and at 79.88 against the US dollar. Check the latest forex rates here.
The Indian rupee continues to be under pressure against the US dollar and would trade in the range of Rs79.50 to Rs80.50 this week, noted analysts. This implies the currency falling to 22 versus the UAE dirham in the weeks after.
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.
New record low last week
The rupee had weakened to a record low of 79.96 last week, weighed down by broad gains in the dollar as red-hot inflation data raised fears of more aggressive policy tightening by the top US central bank.
The partially convertible rupee rose to 79.73 per dollar at one point, compared with Friday's close of 79.88. On Friday during the early trade, the Indian rupee gained seven paise to touch Rs 79.92 for a dollar.
As the US dollar index traded in a range, broadly the trend for dollar is positive till the time it is above $105, latest analysis by India-based broker LKP Securities indicated, while adding that the next hurdle for dollar can be seen around $110, which is why the Indian rupee can be seen weak and why the trend continues towards 80.50.
According to a recent report by Indian lender Kotak Mahindra Bank, the Indian rupee continues to be weighed down by strengthening greenback continuously benefiting form the safe haven demand and US' monetary tightening bias despite the weakening growth outlook.
