Remittance Time: Indian Rupee To Weaken Further After Losing 31 Paise Against Kuwaiti Dinar
Category: Currency and Exchange
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Early Wednesday, the value of the Indian rupee dropped by 31 paise against the Kuwaiti dinar, so it is a good time to remit money for Indian expats in the Kuwait. This would have been the third straight session of declines for the stock.

Analysts all over the world reported that the currency was expected to weaken further as a result of a stronger dollar in overseas markets and higher crude oil prices.

A day after the rupee rate closed at 244.49 KWD against the Kuwaiti dinar on Tuesday, it was at 244.80 KWD early Wednesday, indicating the rupee rate will fall more than expected.

The Indian rupee opened Tuesday's session at 74.60 versus the greenback, and the currency reached an intra-day high of 74.57 and a low of 74.80 against the greenback.

Tuesday's closing price for the rupee was its lowest since December 27, 2021; this was the second straight session of rupee losses. A 33-paise decline has occurred in the rupee's value against the US dollar in the last two days.

Because the Kuwaiti dinar is pegged to the dollar, any weakening of the rupee against the dollar will be reflected in its exchange rate with the Kuwaiti dinar.

It is likely that the US central bank will normalize monetary policy at a faster pace as expected, analysts said, as the rupee depreciated and settled at a one-month low on the strength of weak regional equities and currencies. Wednesday is Republic Day in India, and the markets are closed.

The rupee also fell amid the possibility of a military conflict between Russia and Ukraine and risk-off trades. Furthermore, higher crude oil prices dragged down sentiment on Tuesday.

As a result of trade deficits and outflows of FPIs (foreign portfolio investments), the rupee has been under constant pressure. Foreign institutional investors (FIIs) may pull their money away from India and other emerging markets if the US increases interest rates.

In addition to Omicron normalization, more imports and pressure on the rupee would also result from demand revival, according to analysts. The rise in crude oil prices to $90 a barrel is a warning bell for commodity price rise in the future, they add.

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26 Jan, 2022 3197
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