Dubai: Indian expats are getting ready to remit after value of the Indian rupee dropped hard for a second straight session to as much as 20.52 on Friday. This was a day after the currency hit its lowest value against the UAE dirham this year.
Against the UAE dirham, the rupee had closed at 20.26 on Thursday, but opened at 20.36 on Friday morning, before weakening further by 26 paise by 1100 (Dubai Time). The highest AED-INR exchange rate this year before Thursday's 20.57 rate was 20.48 on January 27. Check the latest forex rates here.
The value of the Indian rupee fell further against $1 on Friday, after weakening on Thursday as well. 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.
Why is INR weakening?
After the Reserve Bank of India (RBI) kept benchmark lending rate unchanged for the tenth time in a row at 4 per cent, the rupee opened flat at 74.81 against the US dollar on Thursday, then depreciated to as much as 75.54, registering a decline of 73 paise from the last close.
India-based currency analysts attributed the rupee's sudden steep losses to forex investors selling off riskier assets on the heels of Thursday's red-hot inflation data in the world's top economy, the US.
The rupee dropped 0.5 per cent on Friday, its biggest percentage drop since October 6, with the US inflation figure weighing particularly hard a day on market sentiments after the central bank held its key rates steady.