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Indian rupee tumbles to record low against Kuwaiti dinar
August 13, 2018, 3:47 pm

Remittance transactions from Kuwait to India are expected to spike again, with the Indian rupee tumbling to a new record low on Monday, the first trading day of the week.

The Indian rupee fell to 69.62 per US dollar in early trade and industry sources said it looks like the weakness is going to continue this week.

The rupee touched a historical low of 230 rupees to 1 KD, according to one exchange house. Historical data from also showed that this week’s opening rate for the rupee is the lowest since 13 August, 2017.

The rupee’s weakness has been due to worries over the Turkish crisis. The lira has recently plunged, sending currencies in the emerging markets to low levels.

The Turkish currency has dropped about 45 percent against the US dollar this year due to concerns over President Recep Tayyip Erdo─čan’s increasing control of the economy and a worsening diplomatic row with the United States.

The decline comes as the Turkish lira weakened sharply against the dollar, putting all emerging market currencies in a state of flux. In addition, there are increasing concerns in the market regarding the widening trade deficit of India, which has added to the pressure on the foreign exchange reserves of the country.

Kuwait's exchange houses are expecting the rupee’s decline to boost remittance transactions to India. The weaker the rupee gets, the more money Indian nationals in Kuwait tend to send back home.

Non-resident Indians can make the most of the currency decline as they can avail better exchange rates while sending money back home. If this trend continues, a surge in remittances is expected in the next few weeks. 

Remittances to India have been on the higher side over the past few months due to the volatility in the Indian currency, and are set to increase further, leading to remitters getting more value for every dinar they transact.

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