Rupee may fall below 20-mark against Qatari riyal this year.
The Indian rupee is on course to maintain its downward trend against the dollar-pegged Qatari riyal and may plunge below the Rs20-mark by the end of this year, a new report has said.
According to a report by LongForecast.com, the Indian rupee is in danger of breaching the 74-mark against the US dollar in November this year, translating into a Rs20.32 exchange rate against the Qatari riyal.
The report maintains that it is only a matter of time before the Indian currency plunges below the historic low of 68.80 against the US dollar.
The Indian rupee had made an intra-day low of 68.845 per dollar on September 3, 2013.
Acknowledging the report, many Doha-based currency experts also believed that the Indian rupee is not far from its lifetime low of 18.80 against the Qatari riyal that it made in 2013 September.
Given the current dismal form of the Indian currency, the rupee is likely to breach the historic low against Qatari riyal by the end of this month, Adarsh Shenawa, currency expert at Al Zaman Exchange, said.
The Indian rupee traded at Rs18.60 against the Qatari riyal on Monday, which is not too far from the lifetime low.
It won't be the end of the rupee's woes, Shenawa said adding that the currency is likely to face further depreciation in the short to medium term.
"The Indian rupee is likely to slip below 19.5 against the Qatari riyal in the next six to eight months. It might cross the 20-mark by the end of this year," he said.
Shenawa cited the US dollar's growing strength as one of the main reasons for the massive fall of Indian currency.
"The dollar index has been rising on signs of growing economic momentum and talk of more interest rate cuts by US," he said.
A manager at the Habib Qatar International Exchange echoed the view. All the indicators are suggesting that the Indian rupee will continue to fall further against the Qatar iriyal, he said.
The continuous slump in the Indian rupee could prove to be a bonanza for the large Indian expatriate community in Qatar. However, it remains to be seen if it will lead to a surge in remittances to India.
"There is no upward trend in the remittances to India, which is quite unexpected," Shenawa said.
"It seems the Indian expats are sitting on their savings in anticipation of more weakness in the Indian currency and hence a much better exchange rate in the future," he said.
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