Indian Rupee Slips Back to 23 per Dirham Amid Pakistan Tensions

Dubai: The Indian rupee is weakening to 23 per dirham amid market fluctuations triggered by the intensification of tensions along the border. It had finished yesterday at 23.98.

Therefore, it's returning to 23-plus levels for the rupee following its recent appreciation, and the coming days might see significant volatility for the INR due to unfolding geopolitical strains.

Considering the strains on the Indian subcontinent along with worldwide trade insecurities and predictions of interest rate reductions by the Reserve Bank of India, the Indian rupee may experience short-term weakness, according to Krishnan Ramachandran, CEO of Barjeel Geojit Financial Services.

The USD-INR exchange rate might shift towards the 23.2 to 23.35 dirham zone (equivalent to 85.25–85.75 per US dollar) within the coming one to two months. This movement could occur due to market responses to increased local risks, capital outflows, and a more dovish approach from the Reserve Bank of India.

Sensex is down

The primary Indian stock market index has likewise declined following a reasonably strong week. Trading commenced with the index down by 0.19%, standing at 80,641 points.

Investors are still assessing whether there will be an across the board dip when it comes to key sectors.