Dubai: UAE expatriates, especially Filipinos and Indians, are likely to reap more remittance windfalls this year, with the Philippine peso and the rupee forecast to hit new lows against the dirham.

The US dollar has been on an upward trend, pushing the value of the dirham against a number of currencies even higher. A higher dirham can translate into bigger remittance volumes for UAE expatriates.

The Philippine peso (Php) breached the 13 to Dh1 level for the first time in six or seven years on Friday, while the Indian rupee (INR) has been on a downward trend against the UAE currency. As of Tuesday, the exchange rates stood at Php13.06 and INR18.50 for every dirham.

According to Sudhesh Giriyan, COO of Xpress Money, new lows could be achieved this year, given that the US dollar is expected to appreciate further, while the Chinese yuan continues to weaken.

“There is a possibility that the [Philippine] peso could cross the 14 mark within this year. In terms of percentage, the peso has devalued much more than the Indian rupee and has currently hit its lowest in the past 6-7 years,” Giriyan told Gulf News on Wednesday.

Giriyan said the rupee is likewise gaining more strength and is poised to cross an all-time low of 18.85 against the dirham, the same level reached in August 2013.

“Once it crosses that mark of 18.85, there is a likelihood of it reaching the level of 20, but one has to wait and watch if the Reserve Bank of India steps in and intervenes.

“The rupee rate around Christmas was about 17.95 to a dirham. In a month, the rupee has crossed 18.50, which is a major jump of almost 0.60 and depreciation of 2.7 per cent.”

Giriyan attributed the currency depreciation to a combination of “macro factors” including the devaluation of the yuan and strengthening of the US dollar.

He pointed out that the downtrend has affected not just the rupee and the peso, but several  other currencies as well, such as the Russian ruble, which has so far dropped by nearly 9 per cent.