Muscat, April 18: Indian expatriates in Oman are expected to get a good return in exchange for an Oman riyal due in the short-term. According to experts, the rupee is at its seven-month low of 65.70 against the dollar and the trend is expected to continue in the short-term.
Analysts have attributed the fall in Indian rupee to higher crude oil prices, widening trade deficit and due to capital flows outside the country. Strain in international political relations, including the crisis in Syria, had added to the rupee weakening against the dollar. It may be noted that the crude prices are nearly 30 per cent higher than what it was last time around this time.
Madhusoodanan R, general manager, Global Money Exchange, said “The exchange rate for rupee that was revolving around RO167-68 till a few days back has now touched RO170.5 as of Wednesday. Touching the RO170 mark has a sentiment value for the expatriates to send money home in large numbers. Naturally, people are taking advantage of the current weakening of the Indian currency and the RO2 difference.”
He said the exchange rate will continue to stay at RO169-70 at least in the short-term.
“People try to make most of the slightest advantages and a RO2-3 difference is not a small variation. With the summer months fast approaching, people are not holding the money back,” said the manager of another popular exchange in Muscat.
Oil prices extended gains on Wednesday, rising more than $1 on a reported decline in US crude inventories and the risk of supply disruptions. OPEC’s ministerial committee tasked with monitoring the group’s supply-cutting deal with non-OPEC countries, led by Russia, meets in the Saudi city of Jeddah on Friday.
The Organization of the Petroleum Exporting Countries and 10 rival producers have restrained output by a joint 1.8 million barrels per day since January 2017 and pledged to do so until the end of this year. Oil has been supported by the perception among investors that tensions in the Middle East could lead to supply disruptions, as well as falling output in crisis-hit Venezuela.