Rupee slumps to close at record low against UAE dirham

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Rupee slumps to close at record low against UAE dirham

Mumbai - Forex dealers said the dollar's strength against major global currencies weighed on the rupee sentiment.

By PTI

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Published: Mon 8 Oct 2018, 12:00 AM

Last updated: Sat 13 Oct 2018, 4:28 PM

The rupee slumped by 30 paise to finish at a fresh lifetime low of 74.06 against the US dollar (20.17 against UAE dirham) on Monday amid strengthening of the greenback and steady capital outflows. The rupee had opened lower by 14 paisa against Friday's close of 73.76 in early trade as the US dollar strength against major global currencies weighed on the rupee sentiment.

At the Interbank Foreign Exchange (Forex) market, the local currency opened lower at 73.89 a dollar against its previous closing of 73.76.

It recovered to a high of 73.76, but failed to sustain the momentum and plunged to 74.10 and finally closed at 74.06, down by 30 paise, marking its fifth straight session of decline.

On Friday, the domestic unit plummeted by 18 paise to end at 73.76.

Indian rupee may hit 75 against dollar soon
The Reserve Bank of India's (RBI) stance, along with an expected hike in the US lending rates and high crude oil prices are expected to further exert pressure on the Indian rupee in the coming week, experts say.
In addition, the continuous outflow of foreign funds from the equity segment and global market volatility will likely push the rupee to the 75-mark to a US dollar (20.43 against the UAE dirham) in the coming days, the experts opined.
Conversely, RBI interventions in the spot market via intermediaries might somewhat arrest the sharp decline in the rupee's value, but a range of 73.5-75 per dollar (20.02-20.43 against the dirham) is expected.
In the week gone by, the rupee touched a fresh low of over 74 to a dollar in the spot market. It settled at a record closing low of 73.77 (73.7675) per dollar (20.10 against the dirham) on October 5.
Apart from global cues, any further outflow of foreign funds from the Indian equity and bond markets might have an adverse impact on the rupee.
In terms of investments, provisional figures from the stock exchanges showed that foreign institutional investors sold scrips worth Rs 9,522.44 crore during the week ended October 5.
On a weekly basis, the rupee closed at 73.77, weaker by Rs 1.29 from its previous week's close of 72.48 per greenback. 



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