Indian emigrants in Dubai queue to send money home, at a time when the rupee is particularly weak against the dirham, the currency of the United Arab Emirates.
With the dirham valued at 13 rupees from 11 last June, remittances have increased by 30% compared to the first quarter of 2011. Analysts believe that the Indian currency will remain under pressure for a long time, due to India's widening fiscal deficit and rising oil prices.
The weakness of the euro will also weigh in the medium term. Besides the rupee, all major Asian currencies have declined in recent months, including the Malaysian ringgit, the Philippine peso and the Indonesian rupee. And remittances from immigrants to these countries have simultaneously grown. However, the Indian phenomenon is particularly striking and involves not only the simple payment of money to family members, but also currency transfers for investments.
http://timesofindia.indiatimes.com/business/india-business/Gulf-remittances-up-30-as-Re-slips/articleshow/10070812.cms?prtp
