The Indian Rupee has sharply weakened against the UAE Dirham by reaching 23.88. Therefore, it offers Indian expats one of the most favourable remittance opportunities of the years. However, it was hovering between 23.2 and 23.3 for most of July.
Now, exchange houses across the UAE are quoting the INR between 23.7 and 23.88 levels. Surprisingly, it was the rates recorded last in February 2025. Moreover, this decrease is only shy of the rupee’s all-time low of 23.92.
What Triggered the Fall?
The depreciation follows the announcement of the US government of a 25% tariff on Indian imports, citing trade negotiations. Notably, President Trump confirmed it before the August 1 deadline. Therefore, this move has disturbed the Indian market and put downward pressure on the INR.
The US dollar is putting pressure on the Indian rupee, which is currently trading around 87.70. Moreover, the Bloomberg Dollar Spot Index rose 0.3% to the highest level since June 23. In addition, it shows the fifth consecutive day increase due to strong economic data from the US and the expectation that the Federal Reserve will hold interest rates steady.
Should You Remit Now or Wait?
Many Indian expats in the UAE had been waiting for the favorable remittance rate with the hope of a potential trade agreement between the US and India. However, currency analysts have suggested acting fast because new tariffs are now in place and market sentiment is shaken.
A senior foreign advisor said, “If you are waiting for the perfect time, this could be it. These rises are usually not longer.” However, timing could not be better for Indian expats who are looking to send money to their home, as the month-end salary processing is underway.
The sharp rupee drop is an excellent opportunity for the UAE-based Indian remitter. Therefore, experts suggest taking advantage of the current rate before the market correction begins. However, it would be best to check forex rates and consult your exchange house for the latest remittance offer.
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It has crossed 24.03 already. Expats are holding funds to get golden rates.