UAE expats sending money to India, Pakistan and the Philippines are seeing favorable exchange rates as the dirham holds strong against the three Asian currencies. The Indian rupee, Pakistani rupee and Philippine peso are trading close to their weakest levels in years. The movement means one dirham can buy more of the respective currencies when expats remit money home.
As of 8:30am on October 7, the Indian rupee was quoted at 26.20 against the dirham, compared with 26.24 at the previous close. The rate means AED 38.17 was needed to exchange for Rs. 1,000.
The rupee has seen limited movement over the past 24 hours. Exchange houses said some families are splitting their transfers rather than sending the full amount at once. This approach allows households to send part of their funds at current rates while waiting to see whether the currency moves further.
The Pakistani rupee was quoted at 75.6 against the dirham on October 7. The rate was unchanged from the previous day, according to the reported exchange figures. For Indian and Pakistani expats, current levels offer a stronger exchange position for remittances compared with periods when their home currencies were stronger against the dirham.
The Philippine peso was trading at 17.03 against the dirham, compared with 17.01 at the previous close. The peso has moved above the AED 17 level in the latest reading. Oil prices are one factor affecting the Philippine currency since the country imports most of its oil. Expectations that the US Federal Reserve could keep interest rates high have also supported the US dollar, according to the report.
For now, the favorable exchange levels are prompting households to review their remittance plans. Some may prefer to lock in current rates, while others could wait for another market movement before transferring the remaining funds.
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