India’s rupee hits fresh new low against UAE dirham

India’s currency, the rupee, hit a fresh new low against the UAE dirham on Tuesday morning as the US dollar has experienced renewed strength in recent days on the back of interest rate cut expectations by the Federal Reserve.

On Tuesday morning, 1 UAE Dirham could buy 22.7080 rupees. The dirham is pegged to the US dollar, at a rate of 3.67.

Rupee impacted by fluctuation in international markets

In a note on Tuesday morning, news agency Reuters highlighted how all eyes are on the US Federal Reserve, with market watchers hoping that interest rate cuts will be in the offing sooner rather than later, following years of inflationary pressure.

“The US non-farm payrolls data – a key labour market report – and the non-manufacturing ISM data for November are expected during the week, which market participants will look to for further clarity on interest rates. Investors are currently expecting the Fed to cut interest rates by the first half of next year,” reported Reuters.

Meanwhile, the Reserve Bank of India’s Monetary Policy Committee will kick off its bi-monthly review meeting on Wednesday and announce a decision on Friday.

The current repo rate in India is Repo Rate has been stable at 6.50 per cent over the last five interest rate announcements.