rupee hits 8-month high

Having become used to a record weak Indian rupee against the US dollar and other major global currencies over the past year or so, Indian expats in the UAE and elsewhere in the world are now getting that sinking feeling as the Indian currency claws its way back from near oblivion.

The Indian rupee is trading at its strongest level against the UAE dirham (and the US dollar) in almost eight months, trading at Rs16.48 vs Dh1 (Rs60.56 vs $1) at 9.30am UAE time on Tuesday as the country seems to be enjoying windfall foreign investments.

Despite the uncertainty surrounding the imminent new Indian government’s composition and therefore its business and corporate policies, foreign investor confidence in Indian economy and shares is soaring, leading to the benchmark BSE Sensex index reaching an all-time high of 22,074.34 yesterday (Monday, March 24, 2014), fuelling the rise in the rupee.