However, expats should still get between 20.95 and 21 for every UAE dirham at their money changers. The Indian currency came under pressure after global central banks started to normalize policy.

The rupiah closed at a record high of 77.72 against the dollar on Thursday, a loss of more than 6% over the past year as it is weighed down by rising inflation, interest rates, the exit of foreign investors and the fall of the markets.

The weakness in the value of the rupee against the US dollar will automatically be reflected in its exchange rate with the UAE dirham, as the currency of the United Arab Emirates is pegged to the dollar.

Since the beginning of the Russian-Ukrainian conflict at the end of February, the rupee has depreciated by around 4%, while the currencies of other emerging markets have depreciated by 4% to 7%.

The Rupee recently hit new all-time lows on the strength of the US Dollar Index and concerns over global economic growth. Analysts are currently of the view that weak economic data around the world, particularly in China, put pressure on the U.S. dollar index, which hit a nearly two-decade high.

Market participants fear that the tightening of monetary policy in the world’s major countries to combat high inflation could encourage foreign investors to pump liquidity into emerging markets.

There is currently an outflow of funds as investors move funds into high yielding investment instruments. Analysts further assess how the Indian rupee is likely to depreciate this week due to the strength of the US dollar and high crude oil prices.

The USD-INR spot exchange rate is expected to trade in a range of 77.45-77.75, analysts at India-based ICICI Direct noted.