The Indian Rupee (INR) has dropped sharply to 23.9 against the UAE dirham (AED). Thus, it edged dangerously close to its all-time low. Moreover, the decline is one of the most favourable remittance chances of Indian expatriates in the UAE.
The sudden depreciation comes after the US imposed a 25% tariff on Indian exports. So, it is a move that has disturbed the Indian market and intensified selling pressure on the currency.
The rupee fell this week after staying at about 23.3 to 23.4 for most of July, which aligns with month-end salaries. Notably, it is the peak time for remittance. Moreover, all UAE Exchange houses have revealed that the buy rates are now at 23.80. It is a level last seen in February when the rupee record low at 23.93 against the AED.
A Dubai-based currency trader said, “This is as close as it gets to the record low, and could be the best opportunity for those waiting to remit”.
What’s Driving the Rupee’s Fall?
As of now, there are many things that are weakening the Indian Rupee. We have mentioned top of those important factors below:
- US-India trade tensions: Tariff announcement by President Donald Trump after stalled trade talks.
- Weak investor sentiment: Persistent foreign institutional investor (FII) outflows and liquid capital inflows.
- Strong US dollar: Dollar index at multi-week highs due to the strong US economic data.
- Import-related dollar demand: Ongoing payments for crude oil imports from Russia are adding strain.
Experts say that the rupee might have already breached 88 per US dollar without the intervention of the Reserve Bank of India (RBI). In addition, it is under the storm now.
Forecasts Hint at More Weakness
Leading global banks such as Deutsche Bank, Barclays, and MUFG predict that the Indian Rupee is going to remain one of the weakest currencies in Asia in the second half of 2025. Moreover, further decline is expected if the foreign inflows remain muted and the US policies remain unclear.
Should UAE NRIs Remit Now?
Analysts have suggested looking at immediate remittance to maximize return before any short-term inbound removes the advantage.
Jateen Trivedi of LKP Securities said, “Even a minor decline in the Rupee could wipe out this perk. The markets are also preparing for the monetary policy announcement by the RBI on Wednesday, which might bring more volatility.”
The current dip could be sweet for the UAE-based Indian expats. However, the window could end soon.
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