Rise of dollar’s rate gives Asian expatriates, who send money home, reasons to cheer

The recent rise in the value of dollar has given Asian expatriates, who send their money home every month, reasons to cheer.

Most Asian currencies have depreciated by around up to 6% in the past four months, giving expatriates of these countries extra value for their money, according to a report in The Peninsula.   

Among Asians, expatriates of Nepal, Pakistan and Sri Lanka have gained the most as currencies of these countries have fallen the most since January 1 this year.

A depreciating currency augurs well for expatriates because they get additional income because of decline. One Qatari Riyal is now equal to 29.62 Nepali rupee, a steep rise from 27.9 Nepali Rupee at the start of the year.

Similarly, the Pakistani rupee, which had been trading at 30.10 per Qatari riyal on January 1 is now around 31.54, showing a gain of Rs1.44 per riyal.

Similarly, Sri Lankan rupee also weakened around 1.4% since the beginning of this year as the currency depreciated from 41.80 per Qatari Riyal to 43.21 now.  

Indian rupee has also depreciated by around 6.5%, with the currency falling to 18.53 from 17.40 earlier this year.

The Philippine peso has fallen by around 5% to 14.27 (from 13.6 per riyal). However, Euro, Bangladeshi Taka and Egyptian pound have not shown significant fluctuations since the beginning of this year, reported The Peninsula.

The American Dollar has strengthened recently due to a variety of factors. The ICE dollar index, which measures the dollar against a basket of six other currencies, reached a five-month high of 94.058.

The American currency is expected to further strengthen during the next six months.

“The dollar index has gained momentum as US interest rates look set to continue rising and the US economy remains on solid footing,” said an analyst.

Picture courtesy: The Peninsula