Indian rupee drops to lifetime low against dirham at 24.04 - best time for NRIs to remit

Dubai: The Indian rupee has dropped to 24 against the dirham for the first time.

The currency was under pressure after the start of the US 50% tariffs on Indian exports to that country, which came into effect on August 27.

For Indian expats in the UAE, Saudi Arabia and other Gulf states, the drop opens up their best exchange rates for monthly fund transfers to their home country.

Leading remittance channels in the UAE will be lining up some of the most competitive rates. As per available data now, leading remittance platforms are offering 23.95 and 24 to a dirham.

Exchange houses are pegging the rupee-dirham at 23.91, while banks are offering 23.81.

Indian expats in Saudi Arabia are getting 23.51 to a riyal, while in Qatar, it's 24.21.

The lowest point for the rupee against dirham until now was the 23.94 in February.

"There's the US tariff pressure and the rupee also weakened against the Chinese yuan in offshore trading," said Neelesh Gopalan, Treasury anager at a Dubai-based remittance platform.

How India's rupee hit key milestones

* Drop to 20 against dirham - March 5, 2020

* Drop to 21 against dirham - May 9, 2022

* Drop to 22 against dirham - September 2022

* Drop to 23 against dirham - November 29, 2024

* Drop to 24 against dirham - August 29, 2025

In dollar-rupee terms, the INR fell below 88 to the $ and then all the way to 88.31. It finally closed the day (and the week) at 88.2.)

"The dollar-rupee dropping below the key 88 level is primarily driven by heightened foreign portfolio investor (FPI)/foreign institutional investor (FII) selling in response to escalated US-India trade tensions," said Foram Chheda, founder of ChartAnalytics.co.in.

"Capital outflows from India have been significantly amplified by disappointing corporate earnings and higher US Treasury yields, making Indian assets less attractive.

"The other reason is a persistent dollar demand from oil importers, while global risk aversion too has added to the pressure."