US dollar at one-month low: What are your chances to remit now from UAE?

Dubai: The US dollar just dropped to its lowest level in a month, falling for a third straight day as investors grow cautious ahead of a key G7 meeting and amid deepening concerns over America’s rising debt and economic slowdown.

The Bloomberg Dollar Spot Index slid 0.4%, with options markets showing the most bearish short-term sentiment in five years. Analysts say the weakness in the dollar is being driven by growing unease around US fiscal policy, fears of stagflation, and the expectation that US economic growth will slow relative to other countries.

This has a ripple effect – including on currencies UAE expats track closely, like the Indian rupee, Pakistani rupee, and Philippine peso. And that means it's decision time for those planning to remit money in the coming days. (Check real time rates here.)

The Indian rupee weakened to INR85.55 against the US dollar (about INR23.23 to the dirham) – its lowest level in nearly a month. This comes despite the broader dollar weakness, highlighting that the rupee is under pressure due to domestic and global concerns.

For UAE-based Indian expats, this dip brings some opportunity. If you’re looking to remit by month-end, current rates could offer decent value – though a sharper rise in the dollar might push the rupee even lower. Still, with the dollar at a soft point, locking in now could make sense for near-term needs.

After weakening to 15.35 against the dirham at the end of April, the Philippine peso has gradually strengthened this month. It rose to 15.15 in the first week of May and reached 15.07 on May 9 — its strongest level in weeks — as the US dollar lost ground. As of now, the peso is holding steady at around 15.10 to the dirham.

The wobbling US dollar wobbling and shaky investor sentiment shaky may not bring relief for Filipino expats hoping for more pesos per dirham, as the peso could get stronger if the US dollar gets weaker  – though any major US policy signal from the G7 could swing things either way.

The Pakistan rupee rose four paisas from earlier this week to Rs77.16 currently, against the UAE dirham. That’s a modest but helpful bump for Pakistani expats sending money home.

However, demand-driven currency shifts often impact the currency sharply. Given the narrow window before new global economic data comes out, now may be a good time to take advantage of current levels.

While the dollar is down, it hasn’t yet translated to a major changes for all South Asian currencies. That’s largely because of domestic factors affecting the Indian rupee, Philippine peso, and the Pakistani rupee.

Still, if the US continues to hint at a softer dollar policy — or if G7 talks indicate global support for weaker US currency — currencies like PKR and PHP could recover slightly in the days ahead.

If your need is urgent or short-term, now may be a good time to remit, especially for Philippine and Pakistani expats as trends indicate that the currencies will only get stronger with a weakening US dollar.

However, if you can wait a few days, not only can Indian rupee get weaker as per current trends, it’s also worth keeping an eye on G7 outcomes and how the market reacts as a weaker dollar could give you better rates by early June.