New Delhi: The rising price of crude oil and foreign capital outflow have pushed Indian rupees to a record low of Rs. 21.49 against UAE dirham. Against the Saudi Riyal, the rupee slid to Rs. 21.03 on Wednesday.
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.
Although RBI’s intervention by dollar selling will act as a cushion for Indian rupees, it is likely that the rupee will further fall down in the coming days.
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.
Rupees vs dollar
On Thursday, the rupees appreciated 13 paise to 78.90 against the US dollar.
At the interbank foreign exchange, the rupee opened at 78.92 against the American dollar. In initial trade, the local currency witnessed a high of 78.90 and a low of 78.94 against the US dollar.
In the previous session, the rupee had closed at its all-time low of 79.03 against the US dollar.
On the domestic equity market front, the 30-share Sensex was trading 337.14 points or 0.64 per cent higher at 53,364.11, while the broader NSE Nifty advanced 84.00 points or 0.53 per cent to 15,883.10.
Meanwhile, Global oil benchmark Brent crude futures rose 0.07 per cent to USD 116.34 per barrel.
Foreign institutional investors remained net sellers in the capital market on Wednesday as they offloaded shares worth Rs 851.06 crore, as per exchange data.
With inputs from agencies