Hold on to your cash: Indian rupee may weaken further

Dubai - If the Indian rupee moves to 70 against the dollar, the dirham will be trading at 19.05 against the current level of 18.50.

In H2 2018, the Indian rupee is expected to weaken further against the US dollar due to capital outflow on account of higher interest rates in the US. India's current account deficit is widening due to higher oil import costs, which is expected to remain above $70 per barrel for the time being.
For US dollar-Indian rupee parity, it is a matter of breaching past 68.90 (Dh18.75), the life-time low hit in 2016, to accelerate a further fall towards 70. During the second half of 2018, the market expects the rupee to touch 70.00 unless there is strong support by the government.
If the Indian rupee moves to 70.00 against the US dollar, the dirham will be trading at 19.05 against the current level of 18.50, reflecting a three per cent depreciation in currency value against the UAE dirham.
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• Gold and Forex