Surging rupee hits Indian remittances in Qatar
Indians working in the Gulf country need to shell out more riyals now to buy the Indian currency.
By PTI |
DUBAI: The surge of Indian rupee against the Qatari riyal is hitting remittances by Indians in the Gulf country hard as they have to shell out more riyals to buy the Indian currency.
The rupee's rise against the dollar is making the riyal weaker. The dollar has recently fallen to a record under Rs 40 and since the riyal is pegged to the greenback, the Qatari currency is losing against the rupee.
Yesterday, 1 QR was fetching Rs 10.88 in the local foreign exchange market as compared to Rs 11 until recently and Rs 13.54 some five years ago, the Peninsula daily reports.
"There is a massive flow of funds from foreign institutional investors," said Brahma Rao, General Manager of Trust Exchange, which is managed by the State Bank of India.
Asked if remittances were affected due to the rupee's appreciation, he said the impact would be known only by the end of this month since remittances slow down as a month progresses.
The rupee's rise against the dollar is making the riyal weaker. The dollar has recently fallen to a record under Rs 40 and since the riyal is pegged to the greenback, the Qatari currency is losing against the rupee.
Yesterday, 1 QR was fetching Rs 10.88 in the local foreign exchange market as compared to Rs 11 until recently and Rs 13.54 some five years ago, the Peninsula daily reports.
"There is a massive flow of funds from foreign institutional investors," said Brahma Rao, General Manager of Trust Exchange, which is managed by the State Bank of India.
Asked if remittances were affected due to the rupee's appreciation, he said the impact would be known only by the end of this month since remittances slow down as a month progresses.
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