Dubai: The Indian rupee fell for a fifth consecutive session of declines on Wednesday and is expected to fall to 22.60 against the UAE dirham, so if you were planning to make deposits in the coming weeks, now is the time to take advantage of these rates.
Down more than 10% against the U.S. dollar this year, the rupee will trade at 82.5 to the dollar in three months, according to the Oct. 28-Nov. 1 Reuters poll of 26 forex analysts. For now, in the coming weeks, the currency is estimated to be around 81.50-81.55 per dollar, although largely stable from recent levels.
Any weakness or strength in the value of the Indian currency against the US dollar will automatically be reflected in its exchange rate with the UAE dirham, as the UAE currency is pegged to the dollar. Check the latest exchange rates here.
If the rupee hit 85 to the dollar by December, it would have lost 12.5% this year – the biggest drop in a decade. While the Reserve Bank of India has stepped in steadily to mitigate the Rupee’s decline, analysts said the intervention was depleting the currency stack at a steady pace.
Although it is difficult to explain the probable presence of RBI just near the 82 level, it still narrows the short-term range from a trading perspective, said a foreign bank spot trader. The Rupee over the past couple of sessions managed to turn around from the 81.80 levels to 81.90, helped by dollar selling from public banks.
The Fed’s meeting minutes will be scrutinized for discussions on the pace of future interest rate hikes. Fed Chairman Jerome Powell, following the November policy decision, had said that while borrowing costs were expected to rise further, the central bank could raise rates in smaller increments going forward.
– with contributions from Reuters