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Remit now: Indian rupee nears 24 against UAE

dirham – record low in sight

UAE exchange houses have started to offer remittance rates of 23.80 and above
Last updated: August 05, 2025 | 14:59

Justin Varghese, Your Money Editor

2 MIN READ

The Indian rupee had been weakening against the UAE dirham, boosting remittances. The drop to
23.4 levels could be the prelude to more.Gulf News Archive
Dubai: The Indian rupee has weakened sharply to 23.91 against the UAE dirham, edging close to its
all-time low and presenting one of the most favourable remittance windows this year for Indian
expats in the UAE.

The sudden drop follows a 25% US tariff on Indian exports, a move that rattled Indian markets and
applied fresh pressure on the rupee. After holding steady around 23.3–23.4 for most of July, the
currency began sliding this week, aligning with the end-of-month salary cycle—a critical period for
remittances. (Check the latest forex rates here.)

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.

What’s driving the drop?
Several factors are converging to weigh down the rupee:

• US-India trade tensions: The tariff announcement, confirmed by President Donald Trump,
followed stalled trade negotiations and triggered market uncertainty.

• Weakening investor sentiment: Persistent foreign institutional investor (FII) outflows and
low capital inflows are adding pressure.
• Strong US dollar: The dollar index is at a multi-week high, with the greenback supported by
strong US economic data and expectations of interest rate stability.

The rupee is also under pressure from import-related dollar demand in India and uncertainty over
potential US penalties related to India's crude oil imports from Russia.

Forecasts point to further weakness
Analysts say the current 23.9 level could remain in place—or even worsen—if clarity does not
emerge on US policy actions or if foreign inflows fail to pick up.

Remit or wait?

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uae-dirham-record-low-in-sight-1.500223139