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8/6/25, 9:33 AM Al Ansari Exchange Addresses Indian Rupee Drop to Near Record Lows and Its Implications for UAE Remittance Market

Al Ansari Exchange Addresses Indian Rupee Drop To Near Record Lows And
Its Implications For UAE Remittance Market

By Adel
Published August 5, 2025

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

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