New Delhi: The rupee, which declined by 22 paise to close at a record low of 79.81 against the US dollar on Wednesday (July 13), is likely to further depreciate to 81 per US dollar by the end of 2022. This would mean that the rupee, which was valued at 21.57 against the UAE currency on Wednesday, would drop to 22 against the dirham.
The rupee continues to be under pressure as the US dollar surged to a 20-year high in overseas markets and foreign investors continued to withdraw funds from Indian stocks. The local unit would continue to trade in the range Rs 78.75-80, according to a noted analysts at Kotak Mahindra Bank.
As the rupee’s value against the US dollar depreciate, it will in turn reflect in the Indian currency’s exchange rate with the UAE dirham, which is pegged to the dollar.
The rupee appreciated 7 paise to 79.74 against the US dollar in early trade on Thursday as a positive trend in domestic equities supported the local unit. However, a strong American currency overseas and forex outflows restricted the rupee’s gain, dealers said.
The rupee continues to be weighed down by the US dollar, which has been strengthening on safe haven demand and US’ monetary tightening bias. Further, fears of aggressive interest rate hikes by central banks to rein in surging inflation weighed on the local unit, PTI quoted the forex dealers as saying on Wednesday.
Crude oil prices trading near USD 100 per barrel level, however, supported the rupee. Further, the rupee got some support as its central bank, the Reserve Bank of India (RBI), stepped in with measures to alleviate the dollar tightness.