Indian rupee dips to 23.4: Should UAE-based Indians send money home now or wait?

Dubai: The Indian rupee has slipped to INR23.40 per UAE dirham, its lowest point in over a month. (Check the latest forex rates here.)

This decline raises a common question among UAE-based Indian expats: Is now the right time to send money home, or should you wait for a better rate?

The recent dip in the rupee comes amid a series of global economic developments:

· US policy concerns: The passage of a multitrillion-dollar spending bill by House Republicans, aiming to extend significant tax breaks, has raised concerns about mounting debt at the world’s largest economy.

· Investor sentiment shifts: These fiscal concerns have led to a decline in investor confidence in the U.S. economy, contributing to a weaker U.S. dollar.

· Asian market reactions: Asian markets have mirrored Wall Street's losses, with concerns about U.S. debt influencing investor behavior across the region.

If you're considering remitting funds to India, here's what to keep in mind:

· Current rate: At INR23.40 per dirham, the rupee is at a favorable level compared to earlier this year.

· Market volatility: While the current rate is attractive, currency markets can be volatile.

· Personal circumstances: If you have upcoming expenses in India, it might be prudent to send money now to take advantage of the current rate.

If you're uncertain about the market's direction, consider splitting your remittance:

· Send a portion now: Transfer a part of your funds at the current rate to secure a favorable exchange.

· Monitor the market: Keep an eye on global economic developments and the U.S. dollar's performance.

· Transfer remaining funds later: If the rupee strengthens further, you can transfer the remaining amount at a better rate.

The Indian rupee's current rate of INR23.40 per dirham presents a favorable opportunity for remittances. However, given the potential for market volatility, a cautious approach—such as splitting your transfer—can help mitigate risks and maximize value.