The Indian rupee has fallen to 23.4 per UAE dirham, generating keen interest among Indian expats on whether to send money back or wait. Fluctuations in currencies due to increasing US debt worries and financial market volatility have made the move more difficult for those depending upon the best rates of exchange. Financial experts are cautioning that although this fall is an attractive opportunity to remit, it may swing further.
The decline is blamed on wider economic sentiment, such as concerns about the US debt ceiling and depressed investor confidence, which have led to a flight from riskier emerging market currencies such as the rupee. Consequently, most of the Indian expatriates in the UAE are reassessing their remittance plans to get the most out of their dirham earnings back home.
Currency analysts recommend following geopolitical events very closely in the next few days. “If the rupee continues to depreciate, it could be a better time,” said a Dubai-based forex consultant. “But waiting for too long could reverse if the Indian economy stabilizes and the rupee recovers.” The next few days may be decisive about the rupee’s direction.
Meanwhile, exchange houses and banks throughout the UAE have reported a marginal lift in remittance business. For people in a hurry to send money, prevailing rates are still good. But for those with time on their hands, they are recommended to track the market for short-term dips that could offer even better transfer periods.
