Expats cheer as Indian rupee nears low

Expatraites in the UAE and rest of the Gulf countries - whose currencies are pegges to the US dollar - are keeping their fingers crossed and remitting large sums of money as the US dollar has gained significant momentum in the past months.

With  the UAE dirham and other Gulf currencies appreciating in tandem against currencies in which expats remit money home, this is leading to welcome monthly savings by expats.

At Rs13.55, the Indian rupee is today trading at an almost 30-month low against the dirham (the INR last traded at these levels in May 2009).

The Pakistani Rupee (PKR), on the other hand, is trading at PKR23.6 against the dirham, close to its all-time low of PKR23.9 achieved last month.

The British pound, too, has lost ground against the US dollar – in effect, against the UAE dirham – and is currently trading at Dh5.77 for £1, close to this year’s low of AED5.62 for £1 made earlier this month. Similarly, the Philippines Peso crossed the PHP12 per Dh1 mark earlier this month although the currency is today trading at PHP11.79 per Dh1.