The Indian rupee slipped to a record low of 91.1825 against the US dollar as it opened on Wednesday.

With the UAE dirham pegged to the US dollar at Dh3.67, the Indian rupee stands at 24.8453 against the UAE dirham.

The currency's all-time low was 91.0750, set in mid-December.

The Indian rupee’s continuous weakening trend is edging the UAE dirham closer to the key Rs25 mark, fueling hopes of increased remittance inflows from the Gulf region and providing expatriate workers with a timely boost in exchange rates.

Given the Reserve Bank of India (RBI) indicating its non-intervention in defending any specific currency level and market predictions of further rupee devaluation, traders are increasingly anticipating challenges in avoiding downward pressure in the short run.

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At present rates, the adjustment is proving advantageous for those earning abroad. With the rupee trading around 90.87 to the dollar, and the UAE dirham pegged at approximately 3.6725 to the US dollar, the dirham is fluctuating between Rs24.70 and Rs24.75. If the rupee weakens to Rs92 per dollar, as some forecasts suggest, the dirham would surpass Rs25, leading to a direct increase in the rupee value of monthly transfers sent home by workers based in the UAE and GCC region.

[With inputs from Isaac John]

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