Money exchange houses are expecting a spike in remittances to India as the rupee’s value against the dollar has recently fallen to its lowest since mid- December 2014.
The Indian currency dropped 0.9 percent on Monday, closing at 62.9175 a dollar, the biggest depreciation since December 16. It is too early to tell whether the high-income non-resident Indians (NRIs) are going to cash in on the low rupee.
Unlike the unskilled or semi-skilled employees who work in labour-intensive sectors like the construction industry, most white-collar expatriates don’t send money to India on a monthly basis. However, when they do open up their wallets, they tend to pump large amounts of money back to their home country.
The slide of the rupee started only on Tuesday and it indicates that a spike in remittances is going to happen soon. According to World Bank statistics, India was the top recipient of remittances in 2014. Indians from around the world sent a total of $70 billion to their home country.