The Indian rupee’s downward trend continued on Wednesday, falling to a new low against the US dollar and UAE dirham.
Statistics from Xe.com show that the rupee stood at 19.82 to the dirham and 72.78 to the dollar on Wednesday morning.
The previous day, the rupee had fallen to 72.70 against the US dollar and 19.70 against the dirham, a 9.82 percent depreciation in 2018.
“Some of the major factors attributed to this depreciation include a US-China trade war, rate hikes by the US Fed, economic turmoil in Turkey and Argentina, US sanction plans against Iran, rising oil prices, and India’s widening trade deficit,” explained Promoth Manghat, group CEO and executive director of Finablr, a financial services company which is the holding company for a number of businesses, including UAE Exchange.
Manghat added that “with crude oil prices and global political conditions dictating the status of the Indian currency in the next few months, we foresee the Indian rupee to further slide down in the last quarter of the year and giving expats another opportunity to remit more.”
Earlier this week, Indian ambassador to the UAE Navdeep Singh Suri said that the weakening of the rupee makes the country an attractive destination for investors and tourists.
“It’s the right time to travel to India, absolutely,” he said. “India has suddenly become a much more affordable destination.”
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