Why a stronger rupee could dash hopes of surge in NRI remittances for Diwali

SourceArabian Business
SectorEconomy
CountryGulf

The Indian rupee is projected to gain strength in the near-term, after a week of highly volatile trade, with forex market experts predicting the currency to claw back value against the US dollar. The predictions of a rebound to 73.20-73.40 level against the greenback from the current level of 73.92 could dash Indian bankers’ hopes of increased remittances by non-resident Indians (NRIs) during Diwali. Diwali, the Indian Hindu festival of lights, falls on November 14. Indian currency is expected to enter a volatile trading period in the near term due to US presidential election NRI remittances, especially from the Gulf region, tend to see an uptick whenever rupee weakens. The Indian currency opened higher at 73.94 per dollar on Monday against a previous close of 74.20, amid buying seen in the domestic equity market. “Clearing the ...read more...