Muscat: The Indian rupee took a heavy plunge on Tuesday touching as high as 186 against the Omani riyal. Rupee dropped alongside several other currencies from the Asian countries.

Speaking to The Arabian Stories, Boban MP, CEO of Unimoni Exchange Oman said worries over the political situation in Jammu and Kashmir and geopolitical concerns across the globe has taken a toll on the strength of the rupee. “All Asian currencies fell sharply during last few weeks on account of growing fear due to trade war between US and China coupled with geopolitical concerns across the globe,” Boban said.

“Indian Rupee came under pressure further due to rapid fall of Chinese and Argentina currency coupled with the slowdown of Indian domestic growth and Kashmir problem,” he pointed out.

“The US-China trade war, on-going Brexit issue, fluctuating oil prices along with other global factors have impacted a lot of Asian currencies,” he said. 

Boban also predicted an upsurge in remittances.  “A depreciation in the home currency usually brings an upsurge in remittances, with expats sending more money back home to their loved ones. This time is no different. With South Asian currencies weakening against the Omani Rial, we foresee the various diasporas incentivizing on their weaker home currency and the remittance outflows to Bangladesh, India, Pakistan, Philippines and Sri Lanka rise,” he added 

According to Boban, this trend is expected to continue in near future. “The sentiment about Indian Rupee and other Asian currencies may continue to be negative in near future and hence these currencies may further fall,” he added.

Speaking about rupee’s downfall, Philip Koshy, General Manager of Modern Exchange Co LLC said: “Growth slowdown worries have led to redemption pressure in capital market. That is keeping the depreciative bias for the local unit intact. Rising crude oil prices exerting pressure on the domestic unit. US President Donald Trump’s comment, to confront China over trade even if it caused harm to the U.S. economy, further dim prospects for a quick trade deal. 

“The immediate focus of the market shifts to the minutes of Fed’s July policy meeting and the minutes of MPC due today. We expect the market to open at around 71.50 and trade in the range of 71.25 to71.65,” he added. 

So what does this mean for Indians living in Oman?

According to Robin Sebastian, a leading financial analyst, NRIs living in Oman should take direct benefits of the plunge. “This is good time for Indians in Muscat to send money back home. Irrespective of how this trend will fluctuate in the coming days, I think they should make use of it now,” he added.