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8/6/25, 9:15 AM Al Ansari Exchange addresses Indian Rupee drop to near record lows and its implications for UAE Remittance Market

Rashed A. Al Ansari, CEO of Al Ansari Exchange. Image Courtesy: Al Ansari Exchange

Al Ansari Exchange addresses Indian Rupee drop to near record lows and
its implications for UAE Remittance Market

The drop in the Indian rupee has been driven by several factors
Press Release

August 5, 2025

Dubai, UAE – Al Ansari Exchange, a leading remittance and foreign currency exchange service provider in the UAE, has
highlighted the recent sharp decline of the Indian rupee 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 drop in the Indian rupee 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 USD 2 billion. 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.

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