The depressing run of the Indian rupee continues as it slumped to an all-time low of 19.39 against the UAE dirham. This is the latest in a series of events that has seen the rupee steadily declining in strength against the US dollar, last closing at 71.21. Experts say that the slump of the rupee could potentially continue and projected that it could possibly hit 19.65 against the dirham in the next few days.
The rupee’s fall is primarily attributed to the inflow of dollars into India as it has become cheaper to export goods because of the decreased value of the rupee. The trend has been observed in several emerging economies where the currencies are losing strength. This is due to the global trade war and exaggerated oil prices.
Furthermore, the Reserve Bank of India has so far refrained from carrying out an intervention that could arrest the further downfall of the rupee. Therefore, the downward slide is expected to continue unabated for a while. Consequently, remittances from the UAE have been surging and have seen an increase of 15 to 20 per cent.