16 hours ago
Rupee Dip Triggers Remittance Surge Among Indian Expats in Bahrain and Gulf
Indian expatriates in Bahrain and across the Gulf region are making the most of a favourable drop in the Indian rupee, resulting in a marked surge in remittances over the past two days.
The rupee has slipped to around ₹221–223 against the Bahraini dinar, its weakest level since early April. This has prompted many non-resident Indians (NRIs) to quickly send money home, capitalising on the improved exchange rate rather than waiting for further declines.
Although June is typically a quieter month for remittances—due to summer travel expenses and home visits—the rupee's slide has created a rare window of opportunity. Expats are choosing to remit now, avoiding speculation about future rate shifts.
Strong Weekend Remittance Activity
Thursday (June 19) saw one of the busiest remittance days in recent weeks. Even as the rupee briefly showed minor recovery, the prevailing sentiment among Indian expats remained confident: send now, rather than regret later.
Exchange houses in Bahrain expect the strong remittance trend to continue through the weekend and into next week, especially if the rupee remains in the 221–223 range.
What's Influencing the Rupee's Value?
Despite heightened geopolitical tensions, particularly in the Middle East, the US dollar has shown limited safe-haven strength—contrary to historical trends. Instead, gold has emerged as the preferred hedge, leaving room for the rupee to hover at relatively favourable levels for remitters.
Looking ahead, experts point to several factors that could influence the rupee's trajectory in the coming months:
Recovery in foreign institutional investor (FII) flows following trade improvements with the US.
Growth in India's defence manufacturing sector, boosting exports and reducing import dependency.
Positive sentiment around India's trade agreements with the UK and expected deals with the US.
Easing inflation, which remains below the Reserve Bank of India's 4% target, increasing the likelihood of further interest rate cuts.
Proactive interventions by the RBI to stabilise currency markets and prevent extreme volatility.
According to Subramanian Sharma, Promoter Director at Greenback Advisory Services, 'These developments point to a possible strengthening of the rupee in the coming months—but for now, Indian expats are rightly taking advantage of the current dip.'
For many families in India, these timely transfers could make a real difference—and for NRIs in Bahrain, it's a smart financial move that blends timing with opportunity.
