India sees drop in foreign remittances to the country

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This February, although the rupee saw a low level at 68.70 against US dollar, it did manage to stabilize since then at around 66.70 levels. Some experts feel that “during the second-half of calendar 2016, the rupee can be expected to depreciate by 3 to 5 per cent more because of global factors driving U.S. dollar strength”.
It seems that the U.S. Fed’s policy was impacting the Indian markets more than local monetary policy. India has also seen a drop in remittances into the country as well as software exports. According to data from 2015 India was the largest receiver of remittances in the world at around $ 70 billion, but data for April 2016 has shown a 90% drop in these remittances.
In Australia, the Feds have left the rates unchanged at 0.5% on 16 June and AUD/USD has managed to climb back over .7400. There are still continued unwarranted fears surrounding Brexit that are still causing a lot of risk-off but it’s important to remember that Brexit isn’t really much of a global risk because while Britain is part of the EU they are not part of the EURO currency.
On 16 June at 5.51 p.m. AUD/INR was trading at 49.45 and AUD/USD at .7350.
 
The writer is Senior Dealer Foreign Exchange with Compass Global Holdings Pty Ltd.

Priyanka Mehta is a Senior Foreign Exchange Dealer with Compass Global Markets which is one of the leading FX solutions provider to Individuals, Businesses, Importers, and Exporters in Australia.

For a professional and personalised service, please call Priyanka on 0421 699 620 or email at priyanka@compassmarkets.com

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