Dubai: Indian expats looking to send money back home were greeted again by remittance-friendly rates as the UAE dirham opened further below Rs21 versus Dh1 for a fifth day.
Against the UAE dirham, the value of the Indian rupee was at Rs21.08 on Friday, after hitting a new record low on Thursday at Rs21.12. Check the latest forex rates here.
However, expats are still expected to get between 20.95 and 21 for every UAE dirham at their exchange houses. The Indian currency has been under-pressure after global central banks started normalising policy.
The rupee dropped as much as 0.5 per cent to 77.6313 per US dollar on Thursday and was at 77.43 on Friday. 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.
Last week the Reserve Bank of India (RBI) too raised key interest rates, and it is once again seeking to defend its currency when the US central bank is tightening its monetary stance and raising rates.
Amid a sharp depreciation in the value of rupee, analysts evaluate how there is enough pressure for the RBI to take drastic measures to contain any further losses. The RBI's stated objective remains to curb excessive currency volatility and in recent weeks reserves have fallen, indicating market intervention, according to analysts.