Page 15 - AAE PR REPORT - AUGUST 2025

Press release:

Al Ansari Exchange Addresses Indian Rupee Drop to Near Record

Lows and Its Implications for UAE Remittance Market

Dubai, UAE – 5 August 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.

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.