Indian rupee dives to 23.86 against dirham - sets up 'record' money transfers by NRIs

Dubai: The Indian rupee has dropped to 23.86 from 23.80 against the dirham as currency markets opened following US President's Trump's threat of 25% tariffs on Indian exports to his country.

This will set up one of the 'highest remittance volumes ever' from the UAE to India in the next few hours and days, according to currency exchange houses.

Already, after the currency market opened in India, banking apps and remittance platforms are seeing 'much higher than average' volumes. This will only spike further once the currency exchange houses confirm their rates.

For Indian expats in Saudi Arabia and Qatar, the current rates to the rupee are 23.37 against Saudi riyal and 24.07 against the Qatar currency.

Indian expats can expect fee slashes on remittances and other short-term offers from the major service providers.

"Even those Indian expats who send in monthly remittances by the 28th/29th of each month have delayed," said an official. "It makes sense after the kind of pressure on the rupee with Trump's decision."

The 23.86 is within touching distance of the all-time low of 23.94 from February 10 - and there is every chance that the rupee could touch those levels or even drop below.

"Based on the early trends, the chances are high for the rupee to slip to 23.94 today," said an FX analyst.

For Indian expats in the UAE and Gulf, this is the second most favourable exchange rates to the rupee they have had. In February, the rupee fell to 23.94 to a dirham, but that was only over a couple of days.

"Today's dirham to rupee volumes will be among the highest ever - the best part is this happening when NRIs are getting their salary credited," said Neelesh Gopalan, Treasury Manager at a Dubai remittance fintech.

"And the same can be expected in the next few days unless the Indian central bank intervenes forcefully to halt the rupee slide."