Dubai: The Indian rupee has gone down to a low against the UAE dirham. This is news for Indian people living in the Gulf because they can send more money back to India. It is bad news for India’s economy because of high oil prices and problems around the world.
On Tuesday, the rupee was very weak against the US dollar. It was Rs96.88 for one US dollar. This made the UAE dirham strong against the rupee. For the time, one UAE dirham was worth Rs26.29.
Indian people living in the UAE are happy because their money is worth more in India. When they send money home, their families get rupees. This is good for people who send money for salaries, savings, property and family expenses.
If someone sends Dh5,000 from the UAE, it is now worth more than Rs131,000 in India. This is one of the times in recent years for Indian people living in the Gulf to send money home.
Experts say the rupee has gone down by 6 to 7 per cent against the US dollar this year. It started the year near the 89 level. Went down fast because of problems in the Middle East. These problems made oil prices go up, which is bad for India because it imports a lot of oil.
India gets more than 80 per cent of its oil from other countries. So when oil prices go up, it hurts India’s economy. The US dollar also gets stronger, which makes the rupee weaker.
Financial experts say that foreign investors are taking their money out of India, which makes the rupee weaker. There is also a lot of uncertainty around the world, and US bond yields are going up. All these things are putting pressure on the rupee.
The Reserve Bank of India is trying to make the rupee stronger. Experts say it may still be weak for a few months. Some experts even think the rupee could go down to Rs100 for one US dollar if oil prices keep going up and there are problems around the world.
The weak rupee is good for people sending money from the Gulf. It can also make prices go up in India. This is because India imports a lot of things, and when the rupee is weak, these things cost more.
