Omani Rial strengthens sharply against Indian Rupee amid tariff shock

Zawya

2 days ago

Muscat: The Omani Rial has surged in value against the Indian Rupee, offering a golden remittance window for Indian expatriates in the Sultanate. Triggered by U.S. President Donald Trump's surprise announcement of a 25% tariff on Indian exports, the rupee slumped to a five-month low, pushing the exchange rate past ₹227 per Omani Rial — a level not seen since February.
At around 11 a.m. today, Bank Muscat quoted an exchange rate of ₹226.398, while private exchange houses offered as much as ₹226.70. Currency platform xe.com showed rates nearing ₹227.68, reflecting high market volatility. The Reserve Bank of India (RBI) is expected to step in to cushion the fall if the rupee edges closer to its all-time low of ₹87.95 against the U.S. dollar.
Many Indian expatriates in Oman, particularly those who receive their salaries at month-end, are rushing to take advantage of the windfall. Santhosh Kumar, a Keralite working with a car parts firm, said, 'I've been saving up for this moment. With the salary just in, I'm sending the money today itself. This is the best rate we've seen in months.' The drop in the rupee's value means expats now receive significantly more in rupee terms for each rial remitted — a boon amid rising living costs and financial obligations back home.
In a message to customers, Nixon Baby, General Manager of Joyalukkas Exchange LLC, Oman, noted: 'The Indian Rupee has recently shown a weakening trend… With the current exchange rate favoring the Omani Rial, now is a prudent time to consider sending money back home, as remittance can yield higher value in India.' He added that while the rupee may remain volatile in the short term, analysts expect the phase to be temporary. 'Timing your remittance during such dips is key to maximizing value,' the statement read.
The Indian Rupee has recently shown a weakening trend… With the current exchange rate favoring the Omani Rial, now is a prudent time to consider sending money back home, as remittance can yield higher value in India.
-Nixon Baby, General Manager of Joyalukkas Exchange -
The rupee's decline today was steep, opening at ₹87.69 per dollar and slipping to ₹87.74 before partially recovering. The Indian central bank is widely expected to step in to limit further depreciation, though it may not aggressively defend a fixed level. India's equity markets mirrored the nervousness: the BSE Sensex dropped over 600 points, while the Nifty50 fell 189 points (0.76%), led by export-heavy sectors like IT, pharmaceuticals, textiles, and auto. The pressure is compounded by foreign capital outflows, with $425 million exiting Indian equities and $4.6 million from bonds on July 29 alone. Meanwhile, U.S. Treasury yields rose to 4.36%, signaling a flight to safety amid growing trade tensions.
As New Delhi studies the implications of Trump's tariff decision, analysts suggest that the current shock may be mitigated if India and the U.S. can reach a trade compromise. Until then, uncertainty is likely to keep the rupee under pressure — a scenario that could continue to benefit Omani remitters in the near term.
For now, the currency swing has handed a rare tactical advantage to Indian expats in Oman, many of whom are seizing the moment.
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