20 May 2012
KUWAIT CITY: Money remittances to India from Kuwait have increased by 15 percent in the last one week, since the record fall of the Indian rupee (INR) against the US dollar, says Titus ED, Director and General Manager of Bahrain Exchange Company (BEC).
Titus was talking to the Arab Times Sunday, when the exchange rate of Kuwaiti Dinar against the INR hovered around Rs 195. "Indian rupee has never fallen so low in history," Titus added.
Titus advised remitters to play by the ear, and not be in haste to send money to India. "An analysis of the factors influencing the sag of Indian rupee shows that the trend will prolong for a while, and there is also a chance of further drop."
The exchange rate of Kuwaiti Dinar against INR is likely to touch Rs 200 in the near future, Titus noted. "But the current time is generally good to send money home. The chance of sudden resurgence of the Indian rupee is very low."
Asked if the Indian rupee trend is affecting investments in India, Titus said investment decisions are never made based on currency trends. "Investors consider macro economic factors and profitability.
"Yes, transfer of funds for investments may be influenced to a minor extent by the fluctuations in exchange rates. But it is never the overriding factor in investment decisions."
Replying to a question on small-time investors planning to buy a plot of land or build a house in India, Titus advised expatriates to clinch good deals as they come by, instead of waiting for the currency to depreciate further.
"One has to consider domestic inflation back home, which will drive up prices outpacing the differences in exchange parities. Therefore, if you play a waiting game, you could end up losing money to inflation."
On the subject of the reasons for Indian rupee's decline, Titus blamed a multiplicity of factors for weighing on INR. Withdrawal of FDI's from India, S&P's downgrading of its outlook on India from stable to negative and the Eurozone crisis were a few he named.
The INR has lost more than 20 per cent since 2011, leading to fiscal deficits and a slowing down of India's GDP growth.
At home, experts blame the government's indecision in introducing financial reforms as the main cause for the rupee's current crisis.
KUWAIT CITY: Money remittances to India from Kuwait have increased by 15 percent in the last one week, since the record fall of the Indian rupee (INR) against the US dollar, says Titus ED, Director and General Manager of Bahrain Exchange Company (BEC).
Titus was talking to the Arab Times Sunday, when the exchange rate of Kuwaiti Dinar against the INR hovered around Rs 195. "Indian rupee has never fallen so low in history," Titus added.
Titus advised remitters to play by the ear, and not be in haste to send money to India. "An analysis of the factors influencing the sag of Indian rupee shows that the trend will prolong for a while, and there is also a chance of further drop."
The exchange rate of Kuwaiti Dinar against INR is likely to touch Rs 200 in the near future, Titus noted. "But the current time is generally good to send money home. The chance of sudden resurgence of the Indian rupee is very low."
Asked if the Indian rupee trend is affecting investments in India, Titus said investment decisions are never made based on currency trends. "Investors consider macro economic factors and profitability.
"Yes, transfer of funds for investments may be influenced to a minor extent by the fluctuations in exchange rates. But it is never the overriding factor in investment decisions."
Replying to a question on small-time investors planning to buy a plot of land or build a house in India, Titus advised expatriates to clinch good deals as they come by, instead of waiting for the currency to depreciate further.
"One has to consider domestic inflation back home, which will drive up prices outpacing the differences in exchange parities. Therefore, if you play a waiting game, you could end up losing money to inflation."
On the subject of the reasons for Indian rupee's decline, Titus blamed a multiplicity of factors for weighing on INR. Withdrawal of FDI's from India, S&P's downgrading of its outlook on India from stable to negative and the Eurozone crisis were a few he named.
The INR has lost more than 20 per cent since 2011, leading to fiscal deficits and a slowing down of India's GDP growth.
At home, experts blame the government's indecision in introducing financial reforms as the main cause for the rupee's current crisis.
© Arab Times 2012
