Indian rupee crosses Rs25 threshold against UAE dirham
On Tuesday, the Indian rupee opened at 91.82 to the US dollar (25.01907 against the UAE dirham) after picking up 8 paise, ending five trading sessions of losses that saw it hit an all-time low.
The rupee has declined 1.18 per cent over the previous week to bring it within striking distance of the 92.00 per dollar level for the first time. The shift comes as equity outflows have remained stubbornly high at nearly $4 billion for January.
The currency’s decline has occurred even as the Reserve Bank of India has regularly intervened to push back on the move, traders say. The central bank is providing dollars at a number of levels rather than defending any one level, market participants say.
The speed of the fall indicates that there is some pressure other than portfolio flows, especially with bullion imports looking to have picked up, traders said.
Expectations of depreciation have been exacerbated by the rupee’s weakness, increasing demand for dollars.
Comments