Indian rupee experiences further depreciation against the UAE dirham as the market opens on Thursday, reaching around Dh22.47 ($82.7) compared to the range of 22.43-22.44 on the previous day (Wednesday).
The recent decline in the rupee follows its most significant single-day loss in nearly two months on August 2. Economic Times attributes the depreciation to various factors, including a weak risk appetite among investors and heightened demand for the US dollar from importers.
Despite a U.S. credit rating downgrade raising concerns about the country’s fiscal outlook, the dollar strengthens against major currencies on Thursday, supported by robust private payrolls data released on Wednesday, signaling continued labor market resilience. As a result, the Aussie drops to a two-month low in Asian trade, while the greenback reaches its highest level against the yen since July 7.
The euro also experiences a decline, falling 0.09% to $1.0928, and the U.S. dollar index climbs to a four-week peak of 102.82, extending the gains from the previous session by 0.5%.
