Business

Indian rupee hits low – at 20.20 for Dh1

Dubai: The rate of dirhams to Indian rupees has dropped to a low of 20.20 for one dirham, prompting a surge of Indians abroad to send out overpayments. The call softness can continue over the weekend and even last until next week. “The sale price of the rupee on Thursday was 20.10 to dirham and has now reached 20.20 on Friday,” said Antony Jos, executive director of Joyalukkas Exchange. “This is quite a drop from the Dh19.96 levels that were there before the US Federal Reserve raised base rates.” It was in June 2020 that the rupee slipped to its lowest point – 20.75 for a dirham.

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The rush to leave NRIs here is quite a departure from the extremely low volumes seen in recent weeks. Transfers to India declined drastically during the second closing phase to control the COVID-19 distribution. “Even the beginning of summer, which is usually a good time for out-of-office payments, only picked up on Thursday afternoon,” Jos said. “The way these currency declines are created by the Fed lasts for about a week and then stabilizes.” In comparison, the exchange rate in Pakistan has been more or less stable over the past 48 hours and is at 42.63 dirhams. On Wednesday, the US Federal Reserve raised base rates, indicating a gradual return to more normality of their monetary policy. It immediately triggered a dollar rise, and gold prices also fell dramatically on Thursday.