New Delhi: The rising prices of crude oil and foreign capital outflow have pushed Indian rupees to a record low of Rs. 22.27 against the UAE dirham. Against the Saudi Riyal, the rupee slid to Rs. 21.77 on Monday.
As the rupee conversion rate is continuously falling for the past few months, Indian expats in the UAE, Saudi Arabia, and other countries are confused between two choices, remit money back home now or wait for a further drop. Most of the NRIs have started remitting money back home.
As foreign investors turned sellers again in September and pulled out Rs 7,600 crore from the Indian equity markets amid a hawkish stance by the US Fed, the rupee is likely to see a further fall down in the coming days.
How exchange rate of Indian currency is determined?
The exchange rate of the Indian currency is determined by the market, however, there is a provision for timely intervention by the central bank in case of volatility.
On Monday, rupee depreciated 38 paise to 81.78 against the US dollar in early trade.
In the domestic equity market, the 30-share BSE Sensex was trading 66.60 points or 0.12 percent lower at 57,360.32, and the broader NSE Nifty fell 12.90 points or 0.08 percent to 17,081.45.
