Sipu Jha
A softening Indian rupee, Pakistani rupee and Philippine peso, trading near multi-year lows against the UAE dirham, is emerging as a remittance opportunity for expatriates in the UAE, prompting many workers to rethink when and how they send money back home. With currencies under pressure from domestic and global economic forces, the current exchange environment is giving senders in the UAE more value per dirham, even as financial advisors urge caution and strategy in timing remittances.
Currencies stay soft, UAE’s Dirham gains value
Soft Asian currencies continue to benefit UAE expats who regularly remit funds to families in South Asia and Southeast Asia. As of late January 2026, the Indian rupee was trading around ₹24.95 per UAE dirham, near its weakest levels in recent years, while the Pakistani rupee remained soft around 76.67 per dirham and the Philippine peso hovered near 15.98 per dirham.According to local exchange house reports, this combination of weak currency rates and a relatively strong dirham has created a rare window where every dirham sent home stretches further.
What’s driving currency weakness?
Currency analysts and market commentators highlight several factors contributing to this environment:
- Indian Rupee Weakness – The Indian rupee’s relative softness is linked to broad global currency pressures, external investor sentiment and strong dollar dynamics. Weakening periods have been seen for several months, putting exchange rates near record lows. This is a key reason why remittances have risen.
- Philippine Peso Volatility – The Philippine peso’s recent performance reflects political and economic uncertainty, slower domestic growth and broader market unease, which has caused volatility and depreciation in recent months.
- Pakistani Rupee at Soft Levels – Although the Pakistani rupee has not dropped further recently, it remains near historically weak territory, supporting steady remittance flows as workers abroad take advantage of these rates.
These movements mirror regional patterns where elevated strength in gulf currencies, particularly the dirham, tends to amplify cross-border purchasing power for remitters based in the UAE.
Remittance trends: Sneak peek at currency flows and value
The ongoing currency environment is not an isolated phenomenon as broader data shows robust global remittance flows underpinning many developing countries’ external spending and household incomes:
Pakistan recorded remittance inflows of about $3 billion in January 2025, showing sustained year-on-year growth as overseas workers continued sending funds despite macroeconomic pressures at home.- Economists and exchange specialists note increasing remittance contributions from Gulf nations, including the UAE, which remain key sources of foreign exchange into South Asian economies.
Although these figures encompass broader remittance dynamics, they underline how money sent from Gulf expatriates remains a central pillar of family finances back in home countries, a trend magnified when currency rates favour senders.
Expert views: To remit now or wait?
Financial advisors and currency strategists emphasise that while rates are currently advantageous, timing and personal financial goals should guide remittance decisions:
- Split Transfer Strategy – As noted by analysts quoted in currency commentary, some UAE families are choosing to split their transfers by sending part now to lock in favourable rates and holding back the rest in case rates weaken further, or improve, in coming weeks.
- Market Volatility Reminder – Currency markets are influenced by macroeconomic forces (global interest rates, investor flows and geopolitical currents) and no one can perfectly predict short-term moves. This means that while current levels are beneficial, they could tighten if currencies rebound. Experts thus suggest a measured approach rather than remitting all at once.
Should UAE expats remit now?
Here’s how different expat groups might think about remittance timing:
- Indian Expats – With the rupee near historic lows against the dirham, Indian expatriates are seeing higher purchasing power for every dirham sent home. Local exchange houses have reported notable increases in remittance volumes coinciding with these weaker rates. Advice: Consider remitting a portion now to lock in strong rates, especially for essential expenses like tuition or rent, while monitoring rate movements for another tranche.
- Pakistani Expats – The Pakistani rupee’s continued softness offers a stable opportunity for reliable remittance value. With remittance inflows already contributing significantly to Pakistan’s economy, this trend is expected to support ongoing household and investment needs. Advice: Partial remittances may balance current value with timing risks.
Filipino Expats – The peso’s pressure partly stems from domestic economic sentiment. This weakness can be advantageous for sending funds now, though volatility tied to political and growth dynamics suggests watching near-term trends as well. Advice: Lock in favourable rates for planned transfers, but be prepared for possible shifts as domestic factors evolve.
Tips for smarter remittance decisions
Financial specialists and currency pros often recommend the following best practices for expatriate remitters:
- Monitor live exchange rates daily before transfer.
- Use accredited exchange houses or platforms that offer competitive rates and low fees.
- Consider partial transfers instead of one large lump sum.
- Stay aware of macroeconomic announcements (e.g., central bank policies) that can influence forex rates.
- Factor in family needs and cash flow timing, not just exchange rates.
Despite current advantages, economists caution that currency trends are fluid. Factors such as global monetary policy shifts, equity market performance and regional economic performance can influence the rupee or peso in either direction. UAE expatriates are thus encouraged to stay informed and flexible, aligning their remittance strategies with financial goals rather than reacting solely to short-term exchange rate moves.The soft Indian rupee, Pakistani rupee and Philippine peso against the strong UAE dirham have created one of the most favourable remittance environments for UAE expats in recent memory, giving workers more value per dirham sent home. However, experts and currency strategists alike stress that timing, partial remittance strategies and careful planning often yield better outcomes than trying to perfectly time currency markets, especially amid uncertain global financial conditions.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)
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