Dubai: India Rupee reached its lowest level in 2022 at 20.66 against the Dirham on Wednesday Rupee fell to 75.88, one dollar, tracking a surge in crude oil prices amid increasing tensions between Russia and Ukraine.Each decrease in rupee value against the US dollar was automatically reflected in the exchange rate against the UAE currency because of Peg Dirham for the US currency In the forex market between banks, Indian currencies are traded in the range of 75.78 and 75.90 against the greenback. The Indian unit has reached a one-year low of 76.23 dollars on December 16, 2021.
Impact of oil price
Global Oil Benchmark Brent Oil extends relentless rallies above $ 110 per barrel before the OPEC + meeting as an international energy institution warned that global energy security was under threat after the Russian invasion to Ukraine. Futures in London and New York both soar more than 5 percent. The situation in the energy market is very serious, the executive director of IEA Fatih Birol said Tuesday after A.S. and other major economies approve the release of oil reserves. Investors will supervise responses from OPEC + when the cartel meets Wednesday to discuss April supply, but only a simple increase that is estimated even though chaos rustle through this sector.
India faces increased inflationary pressure. Fallout from Russia – Ukrainian war is expected to increase energy, metal, and higher grain prices The Russian invasion enters a deadly new phase, which can result in more sanctions and a surge in further energy prices that lead to further pressure on Indian rupees.
Market dynamics
Selling pressure on the domestic equity market and capital flights resulting from foreign institutional investors who change clean sellers can also increase the bottom pressure on the rupee in the coming days Foreign inflows have helped increase Indian rupees in early 2022. However, when they refused in the coming months, the US dollar Icici to the estimated INR for 2022 was to weaken rupees against the greenback. The inflow of foreign investors who buys Indian equity and Indian companies issue dollar bonds. In addition, higher crude oil prices and strong US dollars are also bearish factors for US dollars to estimates INR 2022.
Similar to other currencies, the central bank’s policy is one of the main drivers of the Dollar -Bule Exchange Rates The US interest rate trajectory will have a big impact on the US dollar level – rupees in the coming months. The Hawkish Federal Reserve tone in the context of increasing US inflation and a potential rate hike starting this month tends to work against the view of the rupee.
