The Indian Rupee (INR) hit a historic low against the UAE dirham (AED). Notably, it has dropped to 24 per dirham for the first time on 29 August 2025. However, the sharp decline follows the implementation of the 50 percent tariffs on Indian exports, which took effect on the 27th of August. In addition, the global market conditions have added to the global market conditions.
This fall offers some of the best remittance rates in years for Indian expats in the UAE, Saudi Arabia, and other Gulf countries. However, exchange houses in the United Arab Emirates (UAE) are currently offering between 23.91 and 24 INR per dirham. Still, banks are slightly lower at 23.81.
Dubai-based remittance platform treasury manager, Neelam Gopalan, said, “There is the US tariff pressure. In addition, the INR also dropped against the Chinese yuan in offshore trading.”
Best Time for UAE Expats to Send Money Home
This new exchange rate milestone provides Indian expats with an opportunity to maximize their monthly fund transfers. However, leading remittance platforms are offering highly competitive rates. Currently, they are giving Saudi Arabia at 23.51 INR per riyal and Qatar slightly higher at 24.21 INR per riyal.
The fall to 24 is a significant journey for the rupee over the years. So, you can see the details below:
- 20 against dirham – March 5, 2020
- 21 against dirham – May 9, 2022
- 22 against dirham – September 2022
- 23 against dirham – November 29, 2024
- 24 against dirham – August 29, 2025
Why the Indian Rupee is Weakening
The INR slipped below the important 88 level in terms of the dollar-rupee. As of now, it is nearly 88.2 per US dollar. However, analysts have shared the following reasons behind this drop:
- US-India trade tensions leading to FPI/FII outflows
- Disappointing corporate earnings in India
- Higher US Treasury yields are reducing investor appetite for Indian assets
- Strong dollar demand from oil importers
- Global risk aversion
Foram Chheda, ChartAnalytics.co.in founder, mentioned that the outflow of capital has significantly increased. So, it is weakening the rupee further.
Outlook for Indian Expats in the UAE
Indeed, the weaker Indian rupee has posed a challenge for the Indian economy. However, UAE-based Indians are excited to enjoy the benefit of the higher remittance value. Thus, exchange houses are expected to see an increase in the transfer activity in the upcoming weeks because families can take advantage of the favorable rates.
Read more:
[…] Indian Rupee Falls to 24 Against Dirham for the First Time […]