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9/4/25, 7:29 AM Indian rupee hits record low triggering remittance surge from UAE, GCC expats | Khaleej Times
Karur Vysya Bank. “The central bank has historically intervened to curb volatility, and any excessive speculative activity will not
go unchecked.”
While the rupee’s weakness is rattling policymakers, it has brought an unexpected windfall for India's vast diaspora. In the Gulf,
home to more than nine million Indians, remittance activity has jumped sharply. Al Ansari Exchange reported a 15 per cent
increase in transfers to India in recent days as expats took advantage of the favourable exchange rate.

“The rupee’s depreciation has created a valuable opportunity for the Indian community in the UAE to maximise the value of
their remittances,” said Ali Al Najjar, chief operating officer at Al Ansari Exchange. “We have seen a strong surge in
transactions, particularly with the Onam festival season adding to the momentum. Families are eager to send more back home
when their money goes further.”

The rupee now trades near 24.03 per dirham, compared with stronger levels earlier in the year. For many expatriates, the
difference translates into tangible benefits—allowing them to cover household expenses, pay down loans, or invest in property
and education in India. The seasonal spike in transfers underscores the enduring link between currency markets and
remittance flows from the Gulf, which collectively account for more than 30 per cent of India’s global inflows.

Al Ansari has ramped up operations to handle the surge, boosting liquidity at high-traffic branches, extending working hours,
and offering promotional discounts on transfer fees. “Our priority is to ensure customers can take full advantage of the
exchange rate environment through reliable and efficient service,” Al Najjar said.

Remittances have long served as a stabilising pillar for India’s external accounts, and a weak rupee typically magnifies inflows.
According to the World Bank, India received a record $125 billion in remittances in 2024, with the GCC accounting for the bulk.
Analysts say that if the rupee remains under pressure, remittances could hit another record in 2025, cushioning some of the
tariff-induced pain.

Still, the broader currency outlook remains fraught. With oil prices climbing and India’s import bill swelling, the trade deficit is
likely to widen further. The dollar’s global strength, supported by high US interest rates, adds to the rupee’s vulnerability.
“Unless there is a meaningful improvement in US-India trade relations, the rupee could test fresh lows frequently,” Reddy of
Karur Vysya Bank warned.

For millions of Indian workers across the Gulf, however, the rupee’s plunge is a timely windfall. As the currency struggles under
the weight of tariffs and capital outflows, its weakness is reshaping financial flows from abroad—remittances that continue to
provide lifelines to families, bolster consumption in India, and reinforce the Gulf’s role as a vital partner in India’s economic
resilience.

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