Indian expatriates in the UAE who are awaiting the crediting of their monthly salaries now have the opportunity to profit as the Indian rupee has fallen further to 21.38/21.39 levels (approx.) to the dirham. As fresh pressure builds on the rupee, the overnight currency exchange rate of 21.21/21.22 (approx.) will alter early today, as per the news published by the Gulf News.
The euro and the pound are also depreciating versus the dollar, according to FX sources, so the rupee is not alone in its relative decline. And many now predict that the rupee will reach 22 to the dirham within weeks rather than more gradually. The rupee touched the 21 mark on May 9.
According to one expert, “the pressure is not going away as long as concerns about inflation and what this may do to India’s development prospects continue. If not for the subsidized oil supplies India receives from Russia, the burden on the currency would have been substantially worse.”
According to local exchange houses, the amount of money sent home in the rupee has been consistent throughout the month. Indian expats believe that the current exchange rate of 21+ to the dirham will hold, and they won’t be in any hurry to send money home in the event of a little decline. A treasury expert predicted that “the next bout of enthusiasm will only occur when the rupee reaches 21.50/Dh. That would serve as a significant gauge.”
Sensex drops:
The Sensex lost more than 200 points during the first round of trade on Tuesday, June 28, wiping out the 400+ point gain from Monday. Investors are preparing for corporate earnings data for the quarter as Q1-FY23 draws to a close, according to Mitul Shah, Head of Research at Reliance Securities, in a note. “Amid global fears over the Russia-Ukraine war, interest rate increases, rising worries about corporate profitability, and slowing economic growth continue to dampen the market mood.”
“Over the previous nine months, FIIs (foreign institutional investors) have liquidated more than $39 billion, making it the greatest and longest sell-offs, worse than the 2008 global financial crisis.”
