Page 97 - AAE PR REPORT - AUGUST 2025

8/7/25, 10:12 AM Indian rupee near record lows against UAE dirham, remittance activity surges
Factors impacting the Indian rupee

Related Articles

Dubai to hold business forum
to boost China-UAE The drop in the Indian rupee against the UAE
cooperation dirham has been driven by several factors,
18/07/2024 including heightened trade tensions between
the United States and India, particularly the
Dubai 24-Carat Gold Prices
Rise to $110 per Gram as threat of new tariffs on Indian exports of up to
Global Rates Edge Up Ahead 25 percent. These developments have unsettled
of U.S. Jobs Data investors and triggered capital outflows from
03/07/2025
Indian markets.

July 2025 witnessed the rupee’s lowest monthly performance since 2022, with foreign equity sell-
offs exceeding $2 billion, said Al Ansari Exchange.

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.

UAE sees surge in remittance activity

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 favorable 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.

“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,” said Rashed A.
Al Ansari, CEO of Al Ansari Exchange.

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.

Trump on Monday repeated his threat of imposing steep trade tariffs on India over its purchases
of Russian oil, stating that he will be “substantially raising the tariff paid by India to the U.S.”

Trump’s comments came after he slapped India with 25 percent reciprocal tariffs last week, and
warned that he could impose tariffs of as high as 100 percent on the biggest buyers of Russian oil,
China and India.

Source: economymiddleeast

https://bazaartimes.com/indian-rupee-near-record-lows-against-uae-dirham-remittance-activity-surges/ 2/2