Rupee value set to reach 64 against Dollar | Fusion - WeRIndia

Rupee value set to reach 64 against Dollar

Rupee value set to reach 64 against Dollar

Most NRIs track down the value of rupee so that they can send money back home. This is even truer for those working in Gulf countries. As the rupee is reaching 64 against dollar, it is important to consider if this is the right time to send as much money as possible back to home.

When the rupee falls against the dollar in trading within the interbank currency markets, Indians within the Gulf fetch a much better rate. This is because the Arab Emirates Dhirham, Qatari Rial, Saudi Rial, Kuwaiti dinar and Omani rial are all pegged to the United States dollar.

Many NRIs tend to carry onto repatriating cash and once they get better rates against currencies they have an inclination to repatriate a reimbursement home.

If the dollar rises against the Indian rupee, NRIs get a much better rate to send cash home. So, let’s first see if the rupee might breach the sixty four levels against the dollar, which might offer NRIs higher rates to send cash to Republic of India.

A few factors need to be thought of. One is that the recent fall within the rupee to a brand new 2015 low of 63.77 is on account of persistent dollar demand from Foreign Portfolio Investors who are selling Indian shares. Their demand for the dollar is pushing the rupee lower against the dollar.

There was also a sharp rise in crude oil prices which makes demand for dollar higher. All this suggests that repatriating money could get better rates as rupee will reach 64.

Image Credit: Michael / CC BY 2.0

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