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One Omani Rial is now worth INR 186

Business Tuesday 20/August/2019 14:53 PM
By: Times News Service
One Omani Rial is now worth INR 186

Muscat: One Omani Rial is now worth INR 186, with the value of the Indian Rupee having dropped alongside several other currencies from the developing world.

Exchange houses in Oman are offering rates of around INR 186 for a single Omani Rial, as a weakening economy in India and global financial uncertainly take their toll on the strength of the Rupee. Speaking to Times of Oman, R Madusoodhanan, the general manager for Global Money Exchange, said that on 5 August, the rupee had recorded its biggest ever drop in a single day in six years.

“Currently, we are offering an exchange rate of INR 186 for one Omani Rial,” he said. “This rupee depreciation began in the first week of July, and since then, it has been slowly depreciating. But the biggest fall happened on the 5th of August. I can say that it is the highest fall in almost six year, and on the same day, the Chinese currency suffered its worst fall in 10 years. The Chinese currency dropped because of the impact of the US trade tariffs on Chinese goods.

“The Indian expats who live in Oman and the other countries are very happy, because the exchange rate is now better, and the IT industry in India is cheering, because they get more value for money for their services,” Madhusoodhanan added. “My feeling is that there is nothing to worry, but this trend will continue for some time.”

The global geopolitical uncertainty, which included US President Donald Trump’s trade tariffs on China, and the ongoing protests in Hong Kong, a major business hub, had not just impacted the Indian Rupee, but many other Asian currencies as well.

“Because of all the geopolitical uncertainty as well, many of the Asian currencies have depreciated. There is a fear of global recession, so the central banks are reducing their interest rates, which means there is a threat on growth,” he said. “These banks are taking steps to reduce their interest rates, and when this happens, people will move their investments to safer currencies. People are currently investing in gold, which is why the price of gold has increased slightly.”

He added: “As far as India is concerned, the Indian economy is a big importer of gold. Just like oil, any import of gold will also have an impact on the Indian Rupee. On top of this, there was some concern that the government was going to impose taxes on foreign portfolio investments (FPIs) in India. This was taken negatively by foreign investors, and resulted in an outflow of money from the stock market."