The guitar will be auctioned on May 29 at the Hard Rock Cafe in New York
The Indian rupee could depreciate over the coming days against the US dollar and UAE dirham due to strong demand for the former from importers, higher oil prices and funds outflow from equity markets.
But the South Asian currency will make a smart recovery as India’s economy recovers from the impact of the Covid-19 pandemic, say industry executives and analysts.
However, the Reserve Bank of India (RBI) could step in if the rupee crosses 74 versus US dollar (20.16 against dirham) again to stabilise the currency.
The rupee hit its lowest in 2021 on Friday, reaching 20.16 against the dirham (74 versus the greenback) due to outflows from equities triggered by global risks and inflows into US Treasury bonds. The currency sank from 19.68 on Thursday to 20.16 on Friday against the Emirati currency, losing 2.45 per cent of its value. It last closed at 20.04 versus the dirham and 73.63 against the dollar.
“We have a few volatile days ahead and above 74.00, expect the RBI to be on offer, trying to control the volatility. Forex swap points crashed on Thursday as the RBI allowed investments by onshore banks in foreign government and foreign central banks issued securities to be exempt from the large exposure framework. This would open a way for US dollars to go out of the banking system,” said Simon Ballard, chief economist at First Abu Dhabi Bank.
Richard Wason, CEO of Lulu Financial Holdings, forecast that the rupee might trade between 73.67 to 74.08 in the days to come before making a smart recovery.
“In the near future, the rupee might move between 72.83 to 74.08 versus the dollar [or 19.76 to 20.16 against the dirham]... it might see some more weakness amidst a rise in oil prices and some more correction in the stock market,” Wason said, adding that there is month-end demand for dollars from importers and defence departments.
Antony Jos, managing director of Joyalukkas Exchange, said the rupee has witnessed a sudden downfall against the dollar as US Treasury yields jumped to the highest level in more than a year.
“These sentiments agitated investors for a global sell-off in the market and higher crude prices kept the pressure on the rupee. However, the data shows India’s GDP expanded by a rate of 0.6 per cent in the three months ended December 2020 compared to the previous quarters. It provides a positive outlook,” he said.
“We think that the rupee could hit 73.50 and then see a stabilised position where we could see scope for appreciation.”
— waheedabbas@khaleejtimes.com
The guitar will be auctioned on May 29 at the Hard Rock Cafe in New York
Fitness enthusiast Sarah Lindsay shares insights on what it takes to embark on a fitness journey and sustain it amidst a busy lifestyle
Such platforms help women to re-enter the workforce by equipping them with new-age skills, upskilling, polishing their interviewing skills and revamping their resumes
Official autism-friendly in-flight certification is in the works, possibly used by other airlines
Airlines cut more than half of their normal flight schedules at Paris's two main airports, with many flights in the southern city of Marseille also grounded
This success was underpinned by a robust 19% growth in total income
The group’s asset base surpassed Dh900 billion
Saji first took the exam in January and scored 99.99 but, because he was not satisfied, he sat for the test again in April