The Indian rupee continues to remain in “the weak zone” and financial experts are predicting a further drop against the dollar when the international foreign exchange markets reopen tomorrow.
The Indian rupee is expected to remain in the Rs 51 to Rs 53 to a US dollar range, bankers here in the UAE said. That will come as good news for Indian expatriates here in the UAE looking to remit their savings. The draft rate at many exchanges on Sunday continued to be at Rs13.94 for one UAE dirham.
Says Shree Prakash S, Chief Representative of State Bank of Travancore’s Dubai office: “The money exchange houses are currently selling at the rate listed on Thursday. “When the market reopens, the rupee may move to 53 per dollar and if it crosses the 54 level, the Reserve Bank of India may intervene again.
Promoth Manghat, Vice-President (Global Operations), UAE Exchange said he does not see any chance of rupee appreciation. “The Eurozone crisis and other macro- economic fundamentals indicate that the rupee may weaken further.”
Latest data shows India’s dollar reserves at the lowest level in the last two months due to large scale dollar selling by the Reserve Bank of India to control the rupee’s fall.
The decline in dollar assets by $1.47 billion to $292 billion for the week ended April 6, 2012 indicated that the Indian Central Bank was selling dollars to prop the rupee.
By VM Sathish