Do expats in the United Arab Emirates have to make instalments? Fall in the Indian and Pakistani rupee, rise in the Philippine peso

When it comes to sending money home, knowing if now is the best time to send money is key. To understand whether this is the case or not, you must first know if your currency at home is expected to rise or fall in the coming days.

Here is an analysis of the performance and expected performance of the aforementioned currencies over the coming week, to help you understand if money transfer is now profitable or profitable, or if you should wait a few weeks for a better rate. come.

If a currency is expected to weaken or depreciate, such as the currencies mentioned above in this case, it is prudent to take advantage of more remittance-friendly rates after it has fallen further, rather than now. On the other hand, when it comes to currencies that are expected to appreciate in value, it would be profitable to put them back now, as rates would only rise in the short term.

The Indian Rupee is expected to continue to maintain its narrow trading ranges this week. The rupiah ended unchanged at 81.6850 per US dollar last week. It was trapped in a narrow range of 81.44-81.9150 despite a weaker greenback.

Against the UAE dirham, the Indian rupee is expected to fall to 22.58 in the coming weeks, before rising again, so get back up fast to take advantage of rates.

Any weakness or strength in the value of the Indian currency against the US dollar will automatically be reflected in its exchange rate with the UAE dirham, as the UAE currency is pegged to the dollar. Against the UAE dirham, the Indian rupee is expected to fall to 22.58 in the coming weeks, before recovering thereafter, so recover quickly to take advantage of rates.

“Markets are feeling an easing in the US approach and that is giving risk assets a leg up. This should support the rupiah and unless something changes we will still be in a tight 81-81 range, 80,” a trader with a private bank says.

The trend is for long-term rupee appreciation, but buying dollars could once again limit gains, and downside risk will come from surprises in economic data reports, the trader added. Down more than 10% against the dollar this year, the rupee will trade at 82.5 to the dollar in three months, according to a recent Reuters poll of 26 forex analysts.

For now, in the week ahead, the currency sits around 81.50-81.55 per dollar, largely stable from recent levels. If the rupee hit 85 to the dollar by December, it would have lost 12.5% ​​this year – the biggest drop in a decade.

The currency has fallen every month this year – its longest losing streak in nearly four decades – after the United States adopted a much more aggressive tightening policy than its peers, including the Reserve Bank of India, propelling the greenback at its highest level in two decades.

Over the coming week, however, the Indian Rupee is expected to decline against the US Dollar, following a broad decline in Asian currencies, before rising.

In Pakistan, the rate for buying the US dollar was currently 225.37 Pakistani rupees (61.36 against the UAE dirham).

According to research, the value of the Pakistani rupee is expected to drop the most in value to 61.91 by the middle of next month against the UAE dirham. So, withhold the payment until then.

The Pakistani rupee exchange rate depreciated by 03 paisa against the US dollar in interbank trade on Friday and closed at Rs223.94 against the previous day’s close of Rs223.91.

According to the Forex Association of Pakistan (FAP), the buying and selling rates for the dollar in the open market were recorded at Rs228.75 and Rs231 respectively.

According to research, the value of the Philippine peso is expected to reach 14.86 against the UAE dirham in the coming weeks, which will make it more profitable to send money now. Against the UAE dirham, the peso was currently at 3:40 p.m. The peso has lost more than 12% this year against the dollar.

The Philippine peso, Southeast Asia’s worst performer this year, rose against the dollar after BSP recently announced a 75 basis point hike in its policy rate. The currency gained more than 2% this quarter, wiping out this year’s losses.

The Philippines’ central bank will have to raise interest rates if the United States tightens policy further to support the peso and prevent the weak currency from fueling inflation further, its governor said recently.

Bangko Sentral ng Pilipinas has raised interest rates by 300 basis points this year to rein in inflation, which is near 14-year highs, and support the peso which has fallen sharply against the dollar, supported by aggressive monetary tightening in the USA.

The United States is expected to make a smaller rate hike in December, but economists polled by Reuters see a longer period of tightening and a higher policy rate peak as risks to the current outlook.

“If the Fed is doing 50, we can’t have zero, can we? So the question is whether it’s 25 or 50,” BSP Governor Felipe Medalla told Reuters during a briefing. a recent interview in Manila.

“If you have a scenario (where) the US won’t rise anymore, I can tell you bluntly, neither will we.” BSP raised interest rates by 75 basis points last week, largely to match the US three-quarters point hike this month, and is expected to rise further in December.

– with the contributions of the Agencies