Introduction to the Indian Rupee’s Decline
Many Indian expatriates are adopting a "wait and watch" approach when it comes to sending money back home, particularly given the recent performance of the Indian rupee against the UAE dirham. This cautious strategy is largely due to the rupee’s continuous decline over the past two years, prompting individuals to reassess their financial decisions.
The Reasoning Behind the Wait
Adil Eshack, a resident of Dubai, exemplifies this trend. He has chosen not to send money to India for several months, opting instead to invest in UAE dirhams and US dollars. His reasoning is straightforward: by holding off, he hopes to maximize the value of his money, as sending it to India during this period of rupee devaluation would result in a loss.
Market Performance
The rupee’s fall against the UAE dirham reached a notable point on September 5, with an exchange rate of 24.0762, surpassing its previous all-time low of 24.0681 recorded just a few days earlier on September 1. This decline is attributed to ongoing uncertainties, including concerns over US tariffs on India, which have led to a cautious outlook among dealers.
Expectations of Further Decline
Mohammed IQBal, another Dubai resident, shares the sentiment that the rupee may continue to slip. He cites the lack of changes in US government policy and market conditions as reasons for his decision to hold onto his money for the time being. IQBal’s experience with buying property in India after taking a loan from Dubai, only to suffer a loss despite real estate price increases, further informs his cautious approach.
Strategic Money Transfers
Not all expatriates are waiting, however. Suresh M., a UAE resident, transferred money on September 1 when the rupee dipped, driven by the immediate needs of his family back home for Onam purchases. In contrast, Melissa Edward, based in Abu Dhabi, prefers to wait for favorable exchange rates before making transfers. She also utilizes online apps for money transfers, finding them to offer the most economical rates compared to exchange houses.
Diverse Investment Strategies
Melissa Edward’s approach highlights the diversity in strategies among Indian expatriates. While some are waiting for the rupee to possibly decline further or are transferring money based on immediate needs, others are exploring investment opportunities both in the UAE and India. The use of online apps for transfers and investing in stocks through an Indian account are examples of how individuals are navigating the current financial landscape to their advantage.
