Currency rates hit all time but remittances less

@kabeeryousef –

MUSCAT: Asian currencies hit an all-time low this week giving hopes to expatriates to convert their savings into their home currency but money exchanges reported a lukewarm response owing to many reasons.

Indian rupee hit 208 against 1 Omani Rial, for the first time in the history but the takers of this were very less, as witnessed by the exchange houses.

Liju John, Country Manager of Modern Exchange said remittance flow is not high these days as it is feared that many of the HNI’s (High Networth Individuals) may be waiting for better rates.

“Although the rates didn’t go above INR 208 against one Rial, it is expected to go above 210 in the coming days and by the time people get salaries and return from their holidays, better remittances can be expected,” he added.

While INR traded at 79.87 to 80.02 against dollar Pakistan Rupee continued to depreciate and touched 223.10 against dollar this week. Sri Lankan rupee too hit an all-time low of 362.17 against USD, Philippine Peso touched 56.13, and Nepal rupee at 127.53.

“Response from the potential remitters was not as bad as expected as it is the festival month hence sufficient transactions are happening. However, remittances have been little slow because the low rates happened immediately after the Eid holidays,” said Binoy Simon of Purushotham Khanji Exchange.

According to experts, the key factor driving the rupee lower has been a surge in the US dollar globally. Crude prices elevating to around $110per barrel added further pressure on the rupee. In addition to this, a forecast of 10 per cent inflation by the Bank of England and a tightening lockdown in Shanghai has also had Asian currencies depreciate against the dollar.

“Technically it was not tradable at 80 plus and I guess the previous crossing of 80 was on July 14 or 15, and is due to many reasons including the Ukraine scenario and other socio economic conditions,” Avinash Kumar, General Manager, Al Jadeed Exchange.

“Although the USD-INR has hit 80 for the first time, we have not received many inquiry calls, as anticipated in the wake of the sudden depreciation of many Asian currencies. We believe that the customer may be waiting for a higher rate,” admits Amit Talukder, GM, Global money Exchange.