The value of dollar is constantly falling against Euro and most currencies in Asia. Although, the Gulf countries will meet to decide whether to revalue their currencies or not, but the UAE will not revalue currency unilaterally, says the UAE Central Bank Governor Sultan Nasser Al Suweidi.

UAE envisages embarking on long journey with other Gulf Cooperation Council Countries in all issues including monetary policy.

The six oil exporting Gulf Arab countries settled to peg their currencies to the dollar ahead of a monetary union ahead of a monetary union planned for 2010.

The Indian rupee is showing a sharp appreciation with marking a nine year high, increasing past 42 per dollar on big capital inflows and absence of central bank intervention.

For the large Indian expatriate population in the Gulf, the value of dollar would be low in terms of decreased remittance rate. The dollar pegged dirham also dropped by 6% against rupee since the beginning of this year – from Rs 12.5 to 11.28 per dirham yesterday.

Increasing value of rupee and decreasing dollar can certainly bring a time to rejoice for Indian importers and residents, but it would cause a great impact on India’s exports and the NRI remittance coming from the Gulf countries.

The NRI populace in Gulf is already getting less from their remittance. There has been a 12% hike in the value of partly convertible rupee in July, which was at low from the past three years. This also includes 5.6% increase in 2007 (ended at 41.85/86), going up by 1.6% from the earlier close of 42.51/52.

The value of dollar fell against yen and sterling, which punched through $2 to hit its highest in almost 15 years The US pressure to bring a drop in its current account deficit by a percentage point, further depreciation of the greenback is in the offing that results in further erosion of the dollar-pegged Gulf currencies, explains economists in UAE.

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