Muscat: As the exchange rate between the Omani rial and the Indian rupee continues to climb, people in Oman who want to send money to family and friends in India can now get even more for just one rial.
According to online currency converter XE, the exchange rate of Indian Rupee for Omani Rial reached INR 208.6 on July 14, before dropping slightly to INR 207.4 on July 16, following a steady upward trend. of the exchange rate. over the past year. Over the long term, the Rial/Rupee exchange rate has been rising steadily since at least July 2012.
In terms of conversion from the US dollar, the Indian rupee has actually seen a steady depreciation against the US dollar with several all-time lows in 2022, and is now only a hair’s breadth away from touching the 80 mark. The value of the rupee has depreciated by around 6% this year. Various factors that have put pressure on the rupiah are the rising current account deficit, strengthening US dollar and rising inflation amid high global commodity prices. Crude oil prices, which India imports heavily to meet domestic demand, rose sharply after Russia invaded Ukraine in February.
The magnitude of decline in the value of the Indian Rupee against the US Dollar has been smaller in 2022 compared to other major currencies. The index of the US dollar against the six major currencies – the euro, the pound sterling, the Japanese yen, the Swiss franc, the Canadian dollar and the Swedish krona – has gained 13.0% this year.
Therefore, the strength of the US dollar against the Indian rupee cannot be considered an isolated event. The value of the rupee has depreciated by around 6-7% this year.
When interest rates were low and the supply of dollars was plentiful, investors took risks and invested in the stock markets of emerging economies, including India. Indian stock markets have recorded handsome gains in 2020 and 2021 due to strong risk appetite among foreign investors.
As inflation rates began to rise across the developed world, including the United States in the second half of 2021, respective central banks began talking about responding to high inflation by raising inflation rates. interest.
Then came the conflict in Ukraine in February, which drove up crude oil prices and the subsequent demand for additional dollars. The war has aggravated economic uncertainty. Due to these factors, foreign investors became cautious and started withdrawing money from emerging markets like India.