Send money home smarter: Score savings now as rupee, peso to rise in October!
Maximise your remittances using currency trends for India, Pakistan 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, the Pakistani rupee, and the Philippine peso, are all expected to rise against the UAE dirham 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 days 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.
Philippine peso value to rise, so remit now?
The peso was at 15.26 to the UAE dirham and at 55.97 against the US dollar as the end of September nears, and these exchange rates are seen rising over the next four weeks.
Before ending September at around the same levels it is now, the exchange rate is seen hitting a high value point of 15.10 before the end of next month, according to latest research.
A stronger peso would mean a weaker exchange rate for overseas Filipino workers (OFWs) who send money home in US dollars, or a currency pegged to the greenback, meaning a stronger peso would mean you will get comparatively lesser pesos for your UAE dirham’s worth back home.
Next steps? As the value of the Philippine peso is expected to rise in value against the UAE dirham in the first few weeks of October, such high rates make it most cost-effective to remit now.
Indian rupee to rise, don’t delay remittances
While the Indian rupee was currently at 22.79 to the UAE dirham, the currency was at 83.70 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.
According to new research, the Indian rupee is expected to slightly rise in value against the UAE dirham, between Dh22.66-Dh22.68 in the coming weeks, from the level the currency is at currently.
So while the Indian rupee had been choppy against the US dollar and the UAE dirham until last year, the good news this year was that volatility has been reducing in recent months.
However, trends are set to reverse as per current forecast estimates, as the currency’s exchange rates are set to turn volatile again and weaken by the end of 2024 and the start of next year. But 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 stronger levels for expat remitters by the end of October, it is financially prudent to remit now. This is because you’ll get more Indian rupees for your UAE dirham’s worth than when it is does rise in value.
Pakistani rupee to get stronger, remit soon
The exchange rate of the Pakistan rupee was at 75.50 versus UAE dirham (277.32 against the US dollar) and is expected to get stronger in October. So, it will profit you to remit soon, as forex rates will stay largely unchanged in the next weeks before rates pick up next month.
According to research, the Pakistani rupee value is expected to hover around 75.5 in the last few days of September against the UAE dirham, which is at the levels seen currently. Also, the currency’s value is expected to stay strong for the rest of the year.
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.
Next steps? While it will profit you to remit soon as forex rates will rise in value over the next few weeks, if you wish to postpone your remittance plans to November and December, you can profit from the rates seen currently as a rebound is expected by then. This is what new forecasts reveal.
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
Remittance rates will seem largely unfavourable to remitters for now, as the value of most 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 to 12 months, as per latest forecasts, meaning you may find fewer opportunities to send more money home for the time being.