MUSCAT, SEPT 9 – The Indian Rupee (INR) has further dipped touching an all-time low of 186.78 against RO 1 on Friday but it failed to evoke a positive response from the expatriate community here, according to experts and money exchanges. The INR value, of which has been parading even deeper since last week, had earlier prompted many Indian expatriates working and living in the country to exchange more Omani Rials with their home currency. “While the Indian currency has depreciated, remittances to India too had increased. Indian expats were seen queuing up at financial houses to avail best exchange rates and transfer large sums of money back home”, said Boban MP, CEO, Oman UAE Exchange.
Nonetheless, this decline the reasons of which were attributed to the US-China trade war, rate hikes by the US Fed, economic turmoil in Turkey and Argentina, rising oil prices, and India’s widening trade deficit, did not bring in more customers as the exchange houses had expected owing to two major reasons. “Although remittances had risen in the initial days of this long, rates sinking process, the volumes were proportionately less”, said Rajan, Country Manager of Al Jadeed Exchange.
“For example, the number of senders rose from INR 173 where it was resting for some time against RO 1, but from 186 to where it’s now heading to, proportionate remittances have dipped because for many who have already sent money home, it was an unexpected move and people remained fund-less these days. These have contributed in the less remittances as seen now”, he added. Underlining this, another exchange house too confirmed that the volume of business was not in proportion to what it used to be. “Yes we have seen a good increase in volumes but the increase in transaction number are not in proportion with the increase in volumes”, said Philip Koshy, Country Manager, Modern Exchange LLC
The Indian Rupee fell yet again and touched 71.96 against the US dollar during the intra-day trade on Friday. Experts further said that the exchange rates of Indian Rupees against Omani Rials will further dip down and people are looking for the day when INR touches 190’s against a Rial. “With crude oil prices and global political conditions dictating the status of the Indian currency in the next few months, we foresee the Indian Rupee to further slide down in the coming weeks”, Boban MP added.