After a brief stop, Indian rupee restarts its downward journey

The Indian rupee fell by more than 1 per cent in the opening one-and-a-half hours of forex trade this morning, and was trading at Rs14.47 against Dh1 at 8.50am UAE time (3.50am GMT), down 1.2 per cent from Friday’s close of Rs14.30 against the UAE dirham.

The rupee was weighed down by gains posted by the US dollar, to which the UAE dirham is pegged, against a basket of other global currencies amid a lower opening in the domestic equity market.

Last week, the Indian rupee plunged to all-time record low levels against the dollar/dirham duo due to concerns about a slowdown in the country’s economy and the derailment of economic reforms because of politicking. However, the rupee stabilised after the country’s central bank took steps to stem the fall of the currency.

Dealers said weakness of the euro and other Asian currencies against the dollar overseas and a lower opening in the domestic stock market mainly put pressure on the rupee in early trade on Monday.
Meanwhile, the BSE Sensex fell by 260 points, or 1.67 per cent, to 15,230 in opening trade.

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