Indian rupee opens at all-time low against UAE dirham in early trade

This comes amid demand for US dollar from oil importers, firm crude prices



by

A Staff Reporter

Published: Thu 21 Jul 2022, 10:02 AM

The Indian rupee depreciated one paisa to its all-time low of 80.06 against the US dollar (21.81 versus the UAE dirham( in opening trade on Thursday, amid demand for dollar from oil importers and firm crude oil prices.

Forex traders said the rupee is hovering around 80 level, as the overall gains in crude prices in the last few days, wherein Brent has risen above $106 per barrel mark, is putting pressure on the rupee.

Moreover, rising current account deficit and trade deficit also weighed on investor sentiments.

At the Indian interbank foreign exchange, the rupee opened at 80.03 against the US dollar, then fell to a record low of 80.06, registering a decline of just 1 paisa over the last close.

On Wednesday, the rupee for the first time settled below the 80-level against the US currency due to strong dollar demand from importers and fiscal slippage concerns.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was down 0.19 per cent at 106.87.

Global oil benchmark Brent crude futures fell 0.67 per cent to $106.20 per barrel.

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According to Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors, the rupee slipped below the 80 level as oil buying continues to plague the South Asian currency.

"The Euro and GBP are higher while Asian currencies are lower against the dollar. We have the European Central Bank (ECB) meeting which will decide the rate hike decision. Need to see whether it will be 25 basis points or 50 basis points," Bhansali said.


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