The Indian rupee came under pressure against the UAE dirham again on Monday due to rise in global oil prices and persistent decline in Indian equities.
The rupee, which has lost 14.8 per cent year-to-date against the dirham, fell more than half a per cent on Monday to 19.8 against the UAE dirham. The Indian currency hit an all-time low of 19.87 on September 18.
Rajiv Raipancholia, CEO, Orient Exchange, said if the oil price continued to rise and volatility in Indian equity markets persisted, there is highly likelihood that the rupee would soon hit 20 against the dirham.
"If oil continues to go up and Indian stocks continue downward trend in the next couple of days, the rupee will cross 20 against the dirham," he said.
The market is also concerned about lack of liquidity in non-banking financial sector though Indian finance minister Arun Jaitley has assured the markets of supplying ample liquidity to the market if needed.
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