Send money home smarter: Score savings by delaying remittances to November-end!
Maximise remittances using currency trends for Indian, Pakistani rupee, Philippine peso
Dubai: Good news! Sending money from the UAE to select countries just got more financially savvy! Here's the deal!
Among popular South Asian currencies, the Indian rupee and the Philippine peso are expected to drop against the UAE dirham, while the Pakistani rupee will stay steady in the coming weeks. Ready to leverage these remittance-friendly rates? Here's what to do..
Will your currency back home rise or fall?
When it comes to sending money back home, it is vital to know whether it is currently an ideal time to remit. To understand whether it is or isn’t, one should first find out if your currency back home is expected to rise or fall in the weeks to come. Check live forex rates here.
Here is an analysis of how the currencies have been performing and expected to perform in the coming weeks and month, to help understand whether remitting money now is profitable or cost-effective, or should you wait it out for a few weeks for a better rate to come along. (Check the latest remittance rates in the UAE)
Philippine peso value to drop further, don’t remit now
The peso was at 15.91 to the UAE dirham and at 55.43 against the US dollar at the start of November, and these exchange rates are seen dropping to remittance-friendly levels over the next four weeks, evaluated Amir Saoud, UAE-based forex market specialist.
“By the last week of this month and the first week of December, the exchange rate is seen hitting its lowest value point of 16.55, according to latest research. Although rates may likely drop even further by December-end, possibly 16.90, you would know for certain only by the end of this month,” Saoud said.
A weaker peso would mean a better exchange rate for overseas Filipino workers (OFWs) who send money home in US dollars, or a currency pegged to the greenback, meaning a weaker peso would mean you will get comparatively more pesos for your UAE dirham’s worth back home.
Next steps? As the value of the Philippine peso is expected to drop in value against the UAE dirham from the last week of November, it would be more cost-effective to remit then.
Indian rupee to slip, delay remittances until month-end
While the Indian rupee was currently at 22.89 to the UAE dirham, the currency was at 84.07 against the US dollar. The last time Indian rupee fell to drastically low levels were in 2019 and 2021, and ever since the currency has consistently regained its strength and have kept rising.
However, according to new research, the Indian rupee is expected to slightly drop in value against the UAE dirham to between Dh22.96-Dh22.96 by the end of November and start of December, from the level the currency is at currently, agreed Jasdeep Singh, Dubai-based forex trader and analyst.
“Additionally, rates are set to reverse back to current levels by December end or the end of 2024 and the start of next year,” Singh added. So what is a near-term trend remitters can rely on to base their decisions?
Next steps? As the exchange rate of Indian rupee is expected to move to weaker levels for expat remitters by the end of November, it is financially prudent to hold off remitting until then, which is when you’ll get more Indian rupees for your UAE dirham’s worth.
Pakistani rupee to stay unchanged, so can remittance plans
The exchange rate of the Pakistani rupee was at 75.65 versus UAE dirham (277.57 against the US dollar) and is expected to get stay more or less at its current levels in December. This is why Saoud notes that it will profit you to remit when forex rates stay largely unchanged before rates pick up next month.
The Pakistani rupee had falled against the US dollar and the UAE dirham in the interbank currency market in 2023, weakening by over 20 per cent, but since the start of 2024, exchange rates have been sharply reversing and strengthening since.
Furthermore, the Pakistani rupee value is expected to hover around 75.6 in the last few weeks of this year against the UAE dirham, added Saoud, which is “good news for the currency and for those looking to delay their remittances by a month or more.”
Next steps? As forex rates for the Pakistani rupee will stay same over the next few weeks, you can postpone your remittance plans to December without incurring any losses. This is what new forecasts reveal, and forex experts agree on.
These include factors such as imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, and macroeconomic policies, inflow of investments, banking capital, commodity prices and geopolitical conditions.
A possible decline against the dirham reflects the decline of the currencies' fall against the US dollar on which the UAE currency is pegged. However, if the US dollar weakens, the trends will reverse.
In other words, any weakness or strength in the value of your currency in your home country against the US dollar will be automatically reflected in its exchange rate with the UAE dirham as the UAE currency is pegged to the dollar.
Key takeaway going forward?
Remittance rates will seem largely unfavourable to remitters for now, as the value of several other South Asian currencies are seen experiencing strength in the months to come. This is because the US dollar is expected to weaken further over the next six months, as per latest forecasts, meaning you may find fewer opportunities to send more money home for the time being. So be on the lookout for more such regular updates on forex rates in the months to come!