Picture used for illustrative purposes only. Image Credit: Gulf News archives

Dubai: When it comes to sending money back home, it is vital to know whether it is currently an ideal time to remit. So if you were wondering whether or not you should send Indian rupee back home now or wait a bit, here's what analysts are saying.

Against the UAE dirham, the Indian rupee is expected to slip to 22.9 in the coming days, but stay range-bound at around 22.6 in the weeks after, so remit soon to take advantage of rates. The currency was currently at 22.52. Check the latest forex rates here.

AED to INR Forecast
Against the UAE dirham, the Indian rupee is expected to stay range-bound at around 22.6 in April. Image Credit: The Economy Forecast Agency

Rupee to drop, then rise

The Indian rupee is expected to remain range bound and trade in the band of Rs82 to Rs83 against a US dollar in the next fortnight, the India-based Bank of Baroda said in a report.

Against the US dollar, the Indian rupee was at 82.72. It is expected to trade slightly lower at 83.48 by the end of this quarter, according to Trading Economics' analysts expectations. The analysts estimate it to trade at 85.70 in 12 months time.

Any weakness or strength in the Indian currency's value 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.

According to the report, the Indian rupee appreciated by 0.2 per cent in March (up to March 14) after depreciating by 0.9 per cent in February. Compared to other currencies, the Indian rupee has remained an underperformer. While 18 currencies appreciated around 1 per cent, the rupee was way behind, the report said.

Rupee to stay stable

The Indian rupee will remain at its current level three months from now and gain only marginally by the end of February 2024, barely recouping any of its losses from last year, a Reuters poll of foreign exchange strategists found.

The rupee has steadied after falling more than 10 per cent in 2022, when it was one of the worst performing Asian currencies. It is expected to trade at 82.54 per dollar at the end of May, according to the median forecast in a February 28-March 2 Reuters survey of 34 respondents.

Stock - Indian Rupee
In the near-term, the rupee's movements will depend on global interest rates, mainly driven by the US dollar. Image Credit: Bloomberg

Apart from dollar weakness, foreign portfolio investments (FPI) inflow, lower trade deficit, higher forex reserves with the Reserve Bank of India are expected to support Indian rupee.

- with inputs from IANS