Re­mit­tances to In­dia up as ru­pee sinks to 17-month low

The cur­rency’s value started fall­ing from April 9 when a sin­gle Omani rial could fetch you just un­der Rs167.5

Times of Oman - - OMAN -

Global Ex­change CEO Mad­husud­han said that he had al­most im­me­di­ately no­ticed an in­crease in the num­ber of re­mit­tances af­ter the ru­pee started fall­ing

Times News Ser­vice

MUS­CAT: The value of a sin­gle Omani rial ap­pre­ci­ated to Rs176.50 on Tues­day, a 17-month high.

More­over, re­mit­tances from Oman to In­dia have risen nearly five per cent since the value of the ru­pee started fall­ing on April 9, ex­change houses said.

The ru­pee has now fallen to Rs68.02 against the US dol­lar. On April 9, a sin­gle Omani rial could fetch you just un­der Rs167.5. This makes it an in­crease of some Rs9 in just over a month.

Global Ex­change CEO Mad­husud­han said that he had al­most im­me­di­ately no­ticed an in­crease in the num­ber of re­mit­tances af­ter the ru­pee started fall­ing.

“When the value of the Omani rial against the ru­pee started climb­ing, blue col­lar work­ers started re­mit­ting more money home, al­beit small amounts. The in­crease in the rate of re­mit­tances has been hov­er­ing around five per cent,” he added.

Mad­husud­han added that the value of the ru­pee would fall fur­ther as the fac­tors re­spon­si­ble for its de­pre­ci­a­tion were still rel­e­vant. “When the Omani rial had climbed to over Rs.170, I had pre­dicted that it would rise fur­ther to Rs175. Now that it has, I’m will­ing to bet, it’ll in­crease even more.”

“The fac­tors that made the ru­pee fall are still very much out there. In­dia ex­ports some 80 per cent of its oil and the price of crude has risen to $78 per bar­rel (Brent). It has widened the trade deficit. This will also trans­late to an in­crease in the petrol and diesel prices and a rise in cost of trans­porta­tion and goods for In­di­ans,” he said. “The sec­ond fac­tor is that peo­ple are pulling money out of the In­dian mar­ket as the ru­pee falls. So, the ru­pee has been de­pre­ci­at­ing faster than many other cur­rency. More­over, the US dol­lar has strength­ened. An­other in­ter­est­ing thing to be noted is that the re­sults of the Kar­nataka As­sem­bly elec­tions have been de­clared and it looks very much like a hung As­sem­bly. This will mean a coali­tion govern­ment and the un­cer­tainty that comes with it has shaken in­vestor con­fi­dence,” he added. The Global Ex­change CEO said that the ru­pee had been over­val­ued early last year, adding that it might have con­tributed to the sit­u­a­tion to­day.

“The ru­pee had been over­val­ued at Rs63 against the US dol­lar for no par­tic­u­lar rea­son and now it has come back to its orig­i­nal po­si­tion,” he re­marked. Mad­husud­han said it was an op­por­tune time for In­di­ans to send money home, adding that they should make use of the le­gal chan­nels. “It’s a good time to send money home. One can hap­pily cash in by le­gal means. It is cer­tainly a com­fort­able po­si­tion to be in as far as In­dian ex­pats are con­cerned,” he re­marked.

Newspapers in English

Newspapers from Oman

© PressReader. All rights reserved.