In a positive turn for expatriates in the UAE, the Indian rupee is expected to weaken further against the UAE dirham, making it a more favorable time to send money back home.
According to UAE-based foreign currency exchange analysts, this trend means you can get more Indian rupees for your dirhams, enhancing the value of your remittances.
Evaluating the Indian Rupee’s Performance
The Indian rupee recently hit a record low of 22.79 against the UAE dirham and 83.72 against the US dollar. Analysts forecast a further decline, predicting the rupee could fall to 22.92 against the dirham by mid-August. Amit Trivedi, a forex analyst in Dubai, advises expats to take advantage of the current rates. “Remitting soon could be financially prudent as you’ll get more Indian rupees for your dirhams,” he notes.
Factors Influencing the Rupee’s Decline
The Indian rupee’s performance is influenced by various economic factors, including imports and exports, inflation, employment rates, interest rates, and trade deficits. Recent fluctuations in the rupee are tied to the new Indian Budget and overall economic conditions. The rupee’s value against the dirham also reflects its performance against the US dollar, given the UAE currency is pegged to the dollar.
Looking Ahead
With the US dollar expected to strengthen in the coming weeks, other South Asian currencies might also see increased remittance opportunities. Trivedi suggests that the volatility in the Indian rupee’s exchange rates could persist until the end of 2024, offering more favorable conditions for remitters.
For Indian expats in the UAE, now is an opportune time to send money back home. The weakening rupee against the dirham ensures that your remittances will provide more value, benefiting your loved ones in India. Keep an eye on the exchange rates and make the most of these favorable conditions.
