Pound crosses 107 rupees: Good time to send money to India

LONDON July 16: The pound is up against the rupee, much to the delight of expatriates. Today, the value of a UK pound stood at Rs 107.53. This is in line with the fall in the value of rupees for several months last year. The pound has been through its worst time since mid-September last year.

Government borrowing costs have risen sharply after former prime minister Liz Truss’s mini-budget. Investors panicked after the former UK Chancellor offered them huge tax breaks, without saying how they would be paid. The pound fell to a 50-year low against the dollar as financial markets reacted strongly to the biggest tax cut moves in 37 years. Stocks also fell. The fall of the pound was a major blow to the UK’s expatriate community. This affected remittances to the country.

After Rishi Sunak became prime minister, the pound crossed the Rs 100 mark again. But in the meantime, it had gone below 100. At present, the value addition of the pound is an advantage for people including Malayalees who send money back home.

The pound benefited from a rise in interest rates in the UK and a slight weakening of the dollar in the global market. However, the rise in the price of the pound is a setback for those planning to sell their home assets and transfer money to the UK. The current value addition is an advantage for those working in the UK on a student visa and those working on a post-study work visa after studying. Therefore, this is the best time for them to send money back home.

Those who have settled in the UK as a family often spend the money they earn from working here. For them, a rise in the value of the UK pound will not yield much benefit. This is a good time to send money to families with parents in the country.