Page 104 - AAE PR REPORT - AUGUST 2025

8/6/25, 9:15 AM Indian rupee near record lows against UAE dirham, remittance activity surges
Indian rupee near record lows against UAE dirham, remittance activity surges
The rupee has approached record lows, trading around ₹23.91 per AED

The UAE has witnessed a surge in remittance activity, as Indian expatriates take advantage of the more favorable rates to send additional funds back home
Published: Tue 5 Aug 2025, 6:03 PM
The Indian rupee has recently witnessed a sharp decline against the UAE dirham, which is pegged to the U.S. dollar. The rupee
has approached record lows, trading around ₹23.91 per AED, with intra-week fluctuations between ₹23.63 and ₹23.95. This
marks one of the weakest levels in recent years and has drawn significant attention from expatriate communities and businesses
with exposure to India.
The Indian rupee also hit its weakest level ever against the dollar on Tuesday after U.S. President Donald Trump threatened to
impose more tariffs against New Delhi over its purchase of Russian oil. The rupee rose as much as 0.5 percent to a record high
of 88.102 rupees to the dollar earlier today.

Factors impacting the Indian rupee

The drop in the Indian rupee against the UAE dirham has been driven by several factors, including heightened trade tensions
between the United States and India, particularly the threat of new tariffs on Indian exports of up to 25 percent. These
developments have unsettled investors and triggered capital outflows from Indian markets.

July 2025 witnessed the rupee’s lowest monthly performance since 2022, with foreign equity sell-offs exceeding $2 billion, said
Al Ansari Exchange.

Additionally, the Reserve Bank of India has taken a more cautious stance on currency intervention, allowing the rupee to adjust
more freely to external factors. Global geopolitical concerns and rising oil prices have further weighed on India’s import bill,
exacerbating the currency’s decline.

Read: Stock markets display renewed optimism as investors embrace trade negotiation hopes

UAE sees surge in remittance activity

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