Sending money to India from the UAE? What UAE remitters can expect from INR

Dubai: If you’re working in the UAE and send money back to India, 2025 might be a good year to keep an eye on the exchange rate. Two major Indian banks—State Bank of India (SBI) and Union Bank of India (UBI)—are saying that the Indian Rupee (INR) is expected to stay mostly stable against the US dollar this year.

Because the UAE dirham is tied to the US dollar, this means your remittance value could also remain steady—giving you a good idea of what you’ll get when converting AED to INR.

INR to stay between 84 and 87 per dollar

SBI expects the INR to remain in a range between 85 and 87 against the US dollar for most of the year. UBI, on the other hand, says the INR might even stay closer to 84.40, at least in the near term.

That’s encouraging news for remitters in the UAE. If INR holds around these levels, you’re likely to get a decent rate when sending money back home—especially if the rate moves closer to INR 87 per dollar.

Both banks say the US economy is showing signs of stability, and the US central bank (the Federal Reserve) is likely to keep interest rates unchanged for now. That usually helps the INR stay steady, since it means the dollar won’t get much stronger.

UBI also said the rupee has become more stable recently and is attracting buyers when it dips. In fact, when it briefly dropped below 84 in April, importers and businesses quickly bought up dollars, and the rate bounced back—showing there's strong support at that level.

But there are still some risks

Even though the outlook is positive, there are still some things to watch out for. One of the biggest is news about any border tensions or conflict, which can make the INR weaker. Also, if inflation in the US rises again or the US raises interest rates unexpectedly, the dollar could get stronger—and that might hurt the value of the INR.

UBI says if INR drops below 84.40, it could slide further to around 83.85. But if it moves above 84.90, it could climb back up to around 85.60. In simple terms: if INR weakens (goes up to 87), you get more for your dirham. If INR strengthens too much (falls to 83), you get less.

What UAE remitters should do

If you’re planning to send money back home in 2025, here are a few simple tips:

· Keep an eye on the INR rate. If it moves closer to 87, it’s a good time to remit.

· Break up large transfers. Instead of sending all your money at once, split it across a few transfers to take advantage of small dips in INR.

· Use remittance apps that send you alerts when INR reaches your target rate.

· Stay updated on global news, especially anything related to US interest rates or India’s border situation, as these can affect exchange rates quickly.

In short:

The Indian Rupee is likely to stay between 84 and 87 against the US dollar in 2025. That means you can expect decent remittance value when sending money from the UAE. Keep an eye on the rate and aim to send when it’s closer to INR 87 per dollar. Just be aware that global events and political tensions could still cause short-term changes.