Dubai: Sending money from the UAE to select countries just got more financially savvy! Here's the deal!
Among popular South Asian currencies, the Philippine peso is seen weakening, while the Indian rupee is seen steadying and the Pakistani rupee is seen strengthening against the UAE dirham in the coming weeks.
Ready to leverage these remittance rates? Here's what to do…
Will your currency back home rise or fall in May?
When it comes to sending money back home, it is vital to know whether it is currently an ideal time to remit. To understand whether it is or isn’t, one should first find out if your currency back home is expected to rise or fall in the days to come. Check live forex rates here.
Here is an analysis of how the currencies have been performing and expected to perform in the coming weeks and month, to help understand whether remitting money now is profitable or cost-effective, or should you wait it out for a few weeks for a better rate to come along.
Philippine peso value to weaken more soon, remit then
The peso was at 15.7 to the UAE dirham and at 57.7 against the US dollar, and these rates are seen edging lower over the next four weeks. Before ending May at 16.1, the exchange rate is seen hitting a low value point of 16.3 within the first two weeks, according to research, making it the most cost-effective to remit when it does.
While a weaker peso would mean a better exchange rate for overseas Filipino workers (OFWs) who send money home in US dollars, or a currency pegged to the greenback, a weaker peso would also mean that you will get comparatively more pesos for your UAE dirham’s worth back home.
As the value of the Philippine peso is expected to further weaken in value against the UAE dirham in the first few weeks of May, such rates make it cost-effective to delay your remittance plans until it does.
Indian rupee value to steady in May, postpone remittances
While the Indian rupee was currently at 22.71 to the UAE dirham, the currency was at 83.46 against the US dollar. The Indian rupee fell to record low levels in 2023 but the currency has regained its strength since.
According to new research, the Indian rupee is expected to stay steady against the UAE dirham for the first time in months, between Dh22.7-Dh22.8 in the coming weeks – which is around the level the currency is at currently.
As the exchange rate of Indian rupee will bounce back to weaker levels for expat remitters in the months after, it is financially prudent to remit by the July. This is because you’ll get more Indian rupees for your UAE dirham’s worth when it is does fall in value then.
While the Indian rupee has been choppy against the US dollar and the UAE dirham in the recent past, the volatility has decreased in the past year. However, as per new forecast estimates, flux is again expected to affect the currency’s exchange rates by the middle of 2024.
Pakistani rupee to get stronger versus UAE dirham, remit soon
The exchange rate of the Pakistan rupee was at 278.33 against the US dollar (75.8 versus UAE dirham) and is expected to get stronger in a few months, so it will profit you to remit soon, as forex rates will stay largely unchanged in the next few weeks.
According to research, the Pakistani rupee value is expected to hover around 75.8 in value towards the end of May against the UAE dirham, which is largely at the levels seen currently. Also, the currency’s value is expected to get even stronger by the month for the rest of the year.
The Pakistani rupee has been falling against the US dollar and the UAE dirham in the interbank currency market in 2023, weakening by over 20 per cent. Since the start of 2024, exchange rates have been sharply reversing and strengthening since.
These include factors such as imports and exports, inflation, employment, interest rates, growth rate, trade deficit, performance of equity markets, foreign exchange reserves, and macroeconomic policies, inflow of investments, banking capital, commodity prices and geopolitical conditions.
A possible decline against the dirham reflects the decline of the currencies' fall against the US dollar on which the UAE currency is pegged. However, if the US dollar weakens, the trends will reverse.
In other words, any weakness or strength in the value of your currency in your home country against the US dollar will be automatically reflected in its exchange rate with the UAE dirham as the UAE currency is pegged to the dollar.
Bottom line?
Remittance rates will seem largely favourable to remitters as the value of most South Asian currencies are seen experiencing weaknesses.
