Remit Now or Wait? February Forecast for Indian Rupee, Philippine Peso, and Pakistani Rupee

Analysis of Currency Trends for Expats in the UAE

Dubai, January 20, 2024 – As remittances from the UAE see an uptick, many are questioning whether now is the opportune time to send money back home, particularly concerning the Indian rupee, Philippine peso, and Pakistani rupee. This article delves into the expected currency trends for February and how they might impact remittance decisions.

Pakistani Rupee: Strengthening Expected

• The Pakistani rupee is anticipated to strengthen to 75.40 against the UAE dirham by the end of February, up from its current level. With the currency expected to strengthen further in March, remitting sooner rather than later could be beneficial.
• The currency has weakened significantly over the past year but is reversing course since September 2023.

Philippine Peso: Stability in the Near Term

• The Philippine peso is expected to remain stable against the UAE dirham, making it cost-effective to remit anytime between now and the end of February.
• The peso, currently at 15.21 against the UAE dirham, might briefly hit 15.35 before February-end, but the difference is minimal from the current levels.

Indian Rupee: Steady Rate Until May

• The Indian rupee is likely to maintain its current rate against the UAE dirham throughout February, ending the month at Dh22.62.
• The currency is currently at 22.63 against the UAE dirham. Given the expected stability, it is advisable to remit anytime between now and May.

Economic Factors Influencing Currency Values

• Currency values are closely tied to a country’s economic conditions and policies, influenced by factors like imports and exports, inflation, interest rates, equity markets, foreign exchange reserves, and geopolitical conditions.
• A decline against the dirham reflects a fall against the US dollar, to which the UAE currency is pegged. However, if the US dollar weakens, these trends could reverse.

Bottom Line for Remitters

• Remittance rates may currently seem unfavorable as most South Asian currencies are gaining. However, with the US dollar expected to weaken further over the next six to 12 months, more favorable remittance rates may emerge soon.

Conclusion

For expats in the UAE, monitoring these currency trends can help make informed decisions on when to remit, maximizing the value of their hard-earned money sent back home.