Weak India rupee fails to spur remittances

The Indian rupee's steep fall against the dirham has stirred mixed emotions among expatriates in the UAE.

- Issac John [e-mail]

While families back home gain more rupees per dirham sent, remitters themselves are showing new restraint - a sharp contrast to earlier phases of rupee weakness that saw money transfer counters across the UAE overflowing with customers.

The rupee ended last week at around Rs88.72 against the dollar, its weakest level in a month, after briefly touching a record intraday low of Rs88.80. The currency dropped about 0.7 per cent for the week amid concerns over higher US visa fees, fresh tariff uncertainties, and continuing capital outflows. Despite the Reserve Bank of India's attempts to contain volatility, firmer US bond yields and capital market stress capped the rupee's ability to rebound.