Indian Rupee Strengthens Against UAE Dirham as Dollar Weakens

Post by: Omar Nasser

The Indian rupee and other Asian currencies went up on Monday because the US dollar was under pressure. The pressure on the dollar grew after US President Donald Trump criticized Jerome Powell, who is the head of the Federal Reserve. This made people worried about the independence of the central bank.

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In early trading, the rupee hit a high of 85.0525 against the US dollar, which is about Dh23.1750. However, it later went down a little and ended the day at 85.1125 (Dh23.1914). Still, this was an increase of 0.3% for the day.

Traders thought that the Reserve Bank of India (RBI) might be involved in controlling the rupee's value, but some traders also said that the dollar-buying could be for importers. The dollar’s weakness has made people feel more positive about Asian currencies. This change in feeling can also be seen in the lower cost of protecting against the rupee losing value. The 1-month dollar-rupee forward premium dropped to its lowest point this year, at 15.50 paisa. The non-deliverable forward points also dropped close to their lowest levels since 2025.

On that day, the dollar index, which tracks the dollar against other currencies, hit a low of 98.2, the lowest it has been in over three years. This drop in the dollar was caused by concerns about the US economy and Trump’s plans to change the Federal Reserve.

A White House advisor said that Trump was looking at the possibility of firing Jerome Powell, the head of the Federal Reserve. Even though it’s unlikely that Trump can remove Powell because of legal reasons, any attempt to do so could cause big changes in the market, especially in currency trading.

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