Indian rupee at lifetime low: UAE dirham rates to help expat remitters this week

Dubai: The Indian rupee hit a new all-time low of ₹24.26 against the UAE dirham, making it one of the strongest moments in years for Indian expats to send money home. (Check live forex rates here)

The fall came just before the weekend, after the rupee slipped to ₹89.43 against the US dollar in Friday trading. The drop happened because demand for the US dollar kept rising, foreign investors continued selling Indian assets, and the global dollar remained firm.

Even the US dollar index, which measures the dollar against major currencies, stayed elevated. At the same time, Brent crude prices eased slightly, which normally helps India, but the rupee remained under pressure.

For expats, the effect is simple: Your UAE dirhams now convert into more rupees than before, making remittances stronger.

Based on the data available, the rupee is likely to stay weak or move sideways this week, rather than show any major recovery. Here’s why this expectation is reasonable:

Unless something significantly changes in global markets in the next few days, the conditions that pushed the rupee down are still in place.

For Indian expats, this means: If you plan to send money home soon, this week is unlikely to bring a big rupee rebound. The strong remittance window may continue for a short while.

India’s imports have shot up, especially gold and other goods. At the same time, exports have dropped. When a country buys more than it sells, it needs more US dollars — and that makes the rupee weaker.

Some global investors have been selling Indian stocks and bonds. When they leave, they take their money in dollars, not rupees. Fewer dollars staying in India means the rupee loses value.

The US economy is doing well, and interest rates there are still high. This makes investors prefer the dollar. When the dollar gets stronger, currencies like the rupee usually fall.

India buys most of its crude oil from outside. Oil is paid for in dollars. So whenever India needs more oil, the demand for dollars goes up — and the rupee weakens.

Importing companies are buying more dollars to protect themselves. Exporters are waiting to convert their earnings because they think the rupee may get even weaker. This creates extra demand for dollars and pushes the rupee down further.

The Reserve Bank of India doesn’t let the rupee move sharply. It prefers slow, steady changes. So instead of falling suddenly and bouncing back quickly, the rupee moves down gradually — which makes the weakness more noticeable.