Indians in 'send' mode as Dh1 gets Rs12.90
Rupee at two-year low after drop for third day in a row
The Indian rupee breached the 13 barrier against the dollar-linked UAE dirham as the rupee’s alarming slide continued unabated – reaching its lowest for two years this morning.
The last time rupee breached 13 was in September 2009.
The value of rupee which has been sliding for over a week against the US dollar fell by 34 paise this morning breaking past the 48 to a US dollar mark.
The rate of exchange at currency and exchange houses in Dubai varied from 13.01-13.05 for the dirham to rupee. But by evening it has recoivered some ground to Rs12.90 to a dirham.
Many Indians living in the Gulf usually wait for the best exchange rate to send money home.
“This is the best I can get during the last 24 months. I have a savings of around Dh40,000 and it will be sent today,” said Johny K a manager in a Dubai based company.
The rupee’s slide began on Monday when it hit 12.80, moving down to 12.90 yesterday and today breaching 13.
The eurozone’s troubles, courtesy Greece, affecting the euro’s value against the US dollar is the reason for the rupee’s slide.
Money exchange agencies in the UAE have been experiencing high volume remittances by non-resident Indians and now expect the numbers to increase further.
“This morning it crossed to 13.05 against the dirham,” said M Madhusoodanan, Branch head Ghusais UAE exchange.
Sobia Rahman, Regional Vice-President for the Gulf, Pakistan and Afghanistan, Western Union, told Emirates 24|7 that it is quite natural for expatriates in the gulf to increase their remittance when they get better a better exchange rate.
“It all depends on the sender. There are the low income workers who who send on a regular basis and would have already sent remitted their monthly savings. They have a regular timetable and a fixed amount. At the most they may hold off for a day of two,” she said.
On the other hand she says those with better earnings and regular savings here might think of using this opportunity to remit all their savings to make use of the better rates. “That is what we will be witnessing during the next two days,” she added.
The Reserve Bank of India yesterday said that it will not intervene in the foreign exchange market.
Reports quoted RBI Deputy Governor Anand Sinha as saying that the bank would address volatility and not the level unless the situation gets really worse.
Planning Commission Deputy Chairman Montek Singh Ahluwalia also said that the rupee should move according to market conditions.
