The all-time low of the Indian rupee is good news for expats based in the UAE, according to Promoth Manghat, the CEO of UAE Exchange Group.
Manghat told Arabian Business that the Indian rupee’s (INR) depreciation to 18.63 against the UAE dirham is the lowest since November 2016.
“Expats who remit monthly should continue with their routine as INR has depreciated more than 7.5 percent since the start of 2018,” he said.
“Big ticket senders like investors can probably wait to gain more from further depreciation in the coming months.”
Manghat added that, going forward, a further resurgence of crude prices, the rupee may breach its lifetime lowest level of 18.75 against the dirham.
“However, any pullback in crude prices may help INR to appreciate against AED,” he noted. “The other factor impacting INR would be the ongoing trade turmoil between the USA, EU and China.”
On Thursday, the Indian currency slid 0.7 percent to as much as 69.0925 per dollar, surpassing the previous record of 68.8650.
The weakness spilled over onto bonds, where the benchmark 10-year yield climbed six basis points to 7.93 percent.
Analysts note that brent crude’s gains have led to a widening of India’s current account and iscal deficits. Imports constitute approximately two-thirds of India’s fuel needs, making the South Asian country particularly sensitive to advances in oil prices.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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