DOHA: The Indian rupee hit a record low against the dollar-pegged Qatari riyal (QR) on Friday, sliding to below Rs18 per riyal for the second time in two years.
Foreign exchange operators, bankers and currency analysts in India feel the rupee may further weaken against the dollar. There are others, though, who believe that may not happen and the rupee may stabilise as it had already tumbled enough.
Some say the currency may stabilise at Rs65 to Rs65.50 per dollar by December-end, while others think it may tumble to Rs66.50 level by year-end. At Rs66.50 per dollar, one Qatari riyal would fetch Rs18.26. Yesterday, the official online rate of the riyal and rupee was Rs18.17 per riyal. However, exchange houses and banks were on average offering Rs18.04.
Some exchange houses and bankers here say expatriates with money, including those who have taken bank loans, are largely holding on to cash as they expect the rupee to shed further value against the greenback.
The last time the rupee had fallen to levels below 18 against the riyal was in August-end 2013. An exchange house was quoting Rs18.58 on August 28, 2013. That record rate is yet to be breached.
According to bankers, the Indian government is not intervening to prop up the falling rupee and is leaving it to market forces to determine the currency’s strength.
Bankers say the rupee’s fall currently is in the interest of Indian exporters who have lost much ground in the global market to their rivals from Brazil, China and Russia and elsewhere due to the fall in the currencies of these countries against the dollar.
The rupee has in the past less than three weeks lost close to four percent in value. Most Indians in Qatar are short of funds due to rising costs and those who have money say they would like to save locally to benefit from a strengthening dollar.
However, regular remittances from limited-income Indian expatriates continue to flow home to support their families and their children’s education, exchange house say.
THE PENINSULA
