Dubai: In a beneficial trend for remitters, the Indian rupee ended slightly lower versus the US currency on Tuesday, while dipping against UAE dirham at 22.54 - hovering close to its all-time low of 22.60 which the currency touched last week.
The rupee closed at 82.7250 per US dollar compared with 82.6750 in the previous session, while daily volume was lower than on most days, according to traders. Check the latest forex rates here.
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.
A trader at a private sector bank said it was a "dull" session, marked by some dollar demand from importers, while speculators were "mostly" on the dollar offer side. The unit moved in about 16 paisa trading range on Tuesday after last week's volatility.
The rupee had hit a record low of 83.29 to the dollar last week, before intervention by the Reserve Bank of India helped it recover.
A few analysts now believe the rupee is unlikely to fall significantly below its record low, at least for the rest of 2022.
Likely to 'find its ground'
The rupee is likely to "find its ground" between 83 and 83.50 to the dollar, Arnob Biswas, head FX research at SMC Global Securities, told Reuters.
Elaborating on the assessment about rupee having seen its worst for the year, Biswas said there is a "sense that (US) Fed may slow down the (rate) hike cycle" and that the dollar index is likely to be weaker over the next two months, possibly falling to below 109.
The US dollar index was little changed at around 112, having come under pressure amid bets that Fed officials may slow down the pace of rate increases soon.
Meanwhile, the focus in the Asian currency space was firmly on the Chinese yuan. The yuan traded outside of China dropped to a record low of 7.3650 per dollar following a weaker-than-expected daily fix from the country's central bank. Other Asian currencies followed the yuan lower.
