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8/6/25, 9:16 AM Al Ansari Exchange Addresses Indian Rupee Drop to Near Record Lows and Its Implications for UAE Remittance Market - Middle Ea…
Al Ansari Exchange Addresses Indian Rupee Drop to Near

Record Lows and Its Implications for UAE Remittance Market

August 5, 2025

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.

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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.

For consumers in the UAE, this development is already influencing remittance and currency exchange patterns. Al
Ansari Exchange has observed a surge in remittance activity, as Indian expatriates take advantage of the more
favourable rates to send additional funds back home. The stronger conversion value is allowing customers to remit
significantly higher amounts in rupees for the same dirham outlay, providing tangible benefits to families and
dependents in India. At the same time, businesses and individuals engaged in trade with India are reviewing their
hedging strategies and timing of transactions in light of the increased volatility.

In response to the surge in remittance demand, Al Ansari Exchange has ensured sufficient liquidity across its
nationwide branch network and digital channels, while continuing to provide competitive rates and transparent pricing.
The company has also launched targeted initiatives to attract customers during this period, including special
promotional offers, rate alerts via its mobile application, and expanded staffing at high-demand branches to ensure
smooth and efficient service.

Commenting on the situation, Rashed A. Al Ansari, CEO of Al Ansari Exchange said:
“The current exchange rate presents a unique opportunity for Indian expatriates in the UAE to maximise the value of

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