Page 114 - AAE PR REPORT - AUGUST 2025

8/6/25, 9:16 AM NRIs in UAE cash in on weak rupee; will it fall to ₹24?
NRIs in UAE cash in on weak rupee; will it fall to ₹24?

By Dubai Bureau 0 0

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The Indian rupee has approached record lows, trading around ₹23.91 to the UAE dirham, 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 $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.

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 their remittances. While the outlook for the rupee remains influenced
by global and domestic factors, we are fully prepared to meet the increased demand and provide our customers with the best possible value
and service during this period of heightened currency volatility.” – editor@nrifocus.com

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