Rupee climbs 3% off record low: What it means for UAE remitters

Dubai: Softness in Asian currencies continues to benefit UAE expats, who get more back home for every dirham they send. The Indian rupee, Philippine peso and Pakistani rupee are all trading near multi-year lows, despite a few rebound attempts.

The rupee has bounced back more than 3 per cent from its all-time low of 96.90 per dollar. Two things that are helping the fiat are Trump’s weak showing in the US midterms and falling crude oil prices. The mid-term results have improved the outlook for emerging markets such as India, and crude prices back under $100 a barrel act as another boost.

Foreign investors are also buying Indian equities again, and analysts now expect the rupee to reach around 92.5 against the dollar by the end of December. The dirham is pegged to the dollar, so the rupee is gaining against the UAE currency by the same margin.

Currently the Indian rupee is trading at Dh25.57 versus Dh25.6 in the previous session. Now, an expat will have to spend Dh39.11 to get a Rs1000 in exchange.

The Philippine peso (PHP) has softened against the dirham, currently trading at Dh17.17 lower than its previous close. Elevated oil prices are deepening losses across most emerging Asian currencies as nations like the Philippines face soaring import costs.

For now, favorable rates are prompting households to reassess strategy, deciding whether to lock in current levels or wait for another shift in the market. (Check live forex rates here)

Current exchange rates as of 09:00 am on November 09