Many Indian expatriates are adopting a “wait and watch” approach to sending money back home, even as the Indian rupee slipped to record lows against the UAE dirham. Some are waiting for the rupee to drop further, while others are shifting their focus to investing in the UAE instead.
“The rupee has been falling for the last two years,” said Dubai resident Adil Eshack. “So, I have not sent money to India for several months now. Instead, I am choosing to invest in the UAE dirhams and US dollars because when I send it to India, my money is losing value.”
The rupee fell to 24.0762 against the UAE dirham on Friday (September 5), eclipsing its previous all-time low of 24.0681 set on September 1.
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Dubai resident Mohammed Iqbal said that he believes the rupee could slide further. “With the ongoing uncertainty around tariffs, I’m expecting the rupee to slide further in the near future,” he said. “Unless there are changes in US government policies, I don’t foresee a change in the market conditions. So, I’m holding on to my money for now.”
The continuous decline comes as traders remained jittery over news related to US tariffs on India, while likely dollar-selling intervention by the Reserve Bank of India curbed sharper losses, traders said.
Iqbal added that with the continuous fall in rupee, he was concerned about inflation. “Ten years ago, I had bought a property in India after taking a loan from Dubai,” he said. “Despite the increase in property prices, I still suffered a loss. If I had invested the money in the UAE, my ROI would have been much higher.”
Suresh M., another UAE resident, shared that he sent money on September 1 when the rupee dipped. “At that time, I had just received my salary, and my family back home needed it for Onam shopping. So, I sent them what they needed for the month.”
On the other hand, Melissa Edward, based in Abu Dhabi, takes a different approach. She waits for favourable exchange rates before transferring money. “I keep some money in the bank to earn interest, and I also have an Indian account where I invest in stocks. “As soon as my app notifications dinged that prices had fallen, I immediately sent money home.”
Melissa also prefers using online apps for money transfers rather than going to exchange houses. “I’ve tried different methods for sending money, and I’ve found that apps offer the most economical rates,” she added.
