Many NRIs in the UAE and Saudi Arabia are rushing to send money home as rupee weakens against the UAE dirham. Rupee is now hovering around Rs 23.5 per AED, its lowest level since early April, triggering a spike in remittances across the region. Currency exchange firms across the Gulf have reported a clear uptick in AED-INR transactions since Thursday, June 19. Industry insiders said that many expats are not waiting for the rupee to weaken further and are remitting funds as soon as they have spare cash. “Last Thursday was one of the best days in recent weeks for AED-INR remittances,” a senior official at a UAE-based exchange house told Gulf News.“Even though the rupee briefly strengthened to 23.46, most expats continued to send funds.” Typically, June sees a slowdown in remittances due to higher summer travel and holiday expenses among expats. But this year, the attractive exchange rate appears to have changed that trend, with transactions remaining strong over the weekend and expected to stay high until Monday. Exchange house executives suggest the trend could continue if the rupee stays weak or slips further into July. “If the levels stay the same – or even drops further – by July, that’s a double win for them,” said another official. Interestingly, the surge in remittances has occurred amid the ongoing geopolitical tension, particularly the ongoing Israel-Iran conflict. Traditionally, such instability strengthens the US dollar as investors seek a safe haven. However, this time gold has taken that role, while the dollar has remained relatively soft, a factor supporting the rupee’s position.
