Expatriates in Qatar are in for higher windfalls, as the US dollar has climbed against a number of currencies. The Indian rupee hit a record low of 18.89 against the dollar-pegged Qatari riyal (QR), yesterday.
The Indian rupee fell to a record low of 68.86 against one US dollar, pressured by a rallying US dollar, capital outflows from emerging markets, and worries about the country’s demonetisation drive, which began earlier this month. The rupee breached its previous low of 68.85 to the dollar set in August 2013, when the country was mired in its worst currency crisis in more than two decades.
A rise in the US dollar is good news for expatriates, given that the local currency is pegged to the greenback. A higher dollar means expatriates get to send home more pesos, rupees or euros with their hard-earned riyals.
Most expatriates usually keep a portion of their monthly income for remittance to their countries when rates are favourable. The rupee’s slump means that Indian expats get better value for their money —particularly low-income workers.
“Almost all Asian currencies have fallen against the rising US dollars, with the Indian rupee falling to its record low. The gold prices have also fallen,” said Zubair Abdulrahiman, Operations Manager, Al Zaman Exchange. “More people are turning up for remittances, and we hope this will increase with many getting salaries over the next week."
"Many Indians are also expecting further weakening of Indian rupee crossing 70 to a US dollar,” Abdulrahiman told The Peninsula.
Some exchange houses and bankers here say expatriates with money, including those who have taken bank loans, are largely holding on to cash as they expect the rupee to shed further value against the greenback.
For a worker who earns less than QR1,000 a month, the rupee’s depreciation is a valuable opportunity, as QR1,000 will get him more than Rs18,869.
The Philippine peso plunged to more than 13.70 per riyal while Srilankan rupee reached 40.70 per
riyal.
