At 23.5 to AED, is Indian rupee at right level for NRIs to send money?

Many UAE Indian expats had been 'saving' for just this INR-AED levels

Last updated: June 18, 2025 | 08:42

Manoj Nair, Business Editor

2 MIN READ

The Indian rupee is back to 23.5 levels against the dirham. Can Indian expats in UAE expect more drops by early July?

Bloomberg

Dubai: The Indian rupee has dropped to its lowest point since April, at 23.50 to the dirham (86.34 to the dollar), setting up a highly favourable exchange rate for UAE and Gulf’s Indian expats.

On Friday last (June 14), the Indian rupee had shown signs of softening against dollar’s gains, after holding more or less steady for the previous two months. According to local exchange houses, a significant number of Indian expats will try and use this opportunity to send funds homes.

Also Read: Will Dubai gold rate ever drop back to under Dh300?

The 23.5 to the dirham has become a ‘psychological benchmark’ as far as UAE’s NRIs are concerned – and that’s exactly what they are seeing again.

One has to go back to April 10 ‘to see a rate close to 23.5’, according to Neelesh Gopalan, Treasury Manager at a Dubai fintech.”The trends suggest these levels could maintain for the next few days – even until early July.”

Whether that’s so or not, today’s levels do create prospects for those NRIs who had been waiting for just such an opportunity. “A weakening dollar from April has been the main reason why many Asian expats in the Gulf were seeing they no longer are getting the same out of their remittances every month,” said an FX analyst. “Those who could delay sending their full remittances have done so – and they are seeing the benefits of that.

“The dollar seems to be trending stronger, at least now.”

The trends suggest these levels could maintain for the next few days – even until early July

Neelesh Gopalan Treasury Manager at a Dubai fintech

India's FX reserves

The Israel-Iran situation will have consequences for India, especially if oil prices were to firm up further and add to India's import costs. (Currently, Brent crude is at just over $75 a barrel.)

Market analysts say it's unlikely that the central bank - RBI - will be thinking of an intervention to stabilize the rupee for now. India's dollar reserves are at $697 billion, and that's ample for RBI to deploy as and when they see fit.

"I think closer to 23.6/23.7 would be when RBI seriously considers some sort of rupee stabilization," said the FX analyst. "Also, end of the month is when dollar settlements get done, and that too could soften up the rupee."

if Indian expats play their cards right, they could be well placed even by late June or early July, when they are ready to send the next funds home.

Manoj NairBusiness Editor

Manoj Nair, the Gulf News Business Editor, is an expert on property and gold in the UAE and wider region, and these days he is also keeping an eye on stocks as well. Manoj cares a lot for luxury brands and what make them tick, as well as keep close watch on whatever changes the retail industry goes through, whether on the grand scale or incremental. He’s been with Gulf News for 30 years, having started as a Business Reporter. When not into financial journalism, Manoj prefers to see as much of 1950s-1980s Bollywood movies. He reckons the combo is as exciting as it gets, though many will vehemently disagree.