Indian rupee is set to see further gains, forcing UAE expats to delay remittances

Whether that is a smart move or not depends on currency’s further trajectory

- BY JUSTIN VARGHESE Your Money Editor

lhe Indian rupee’s recent surge has strengthened expectations of further gains, leading many UAE-based Indian expats to delay sending money home in anticipation of better exchange rates.

The rupee jumped more than 1 per cent on Tuesday to around 90.29 against the US dollar, from a close of 91.53 a day earlier. Against UAE dirham, rates were ranging 24.8-24.9 last week, but over the past two days the currency value has risen to between 24.4 and 24.5.

The move followed an India — US trade agreement that boosted investor confidence and encouraged foreign inflows, alongside reported intervention by the Reserve Bank of India in the spot market.

Not a short-term spike

Market participants said the rally reflects a broader constructive trend rather than a short-term spike. “The pull back is corrective in nature, with the broader higher-high, higher-low structure still intact on higher time frames,” analysts said, referring to the rupee’s recent retreat from levels above 92.