Indian rupee gets stronger again - UAE's Indian expats need a rethink when to send next
Rupee trading at its highest point in 2025 as dollar index weakens further
Dubai: The Indian rupee has firmed up again - this time, to its highest point since the start of 2025. It is trading at 23.14 to a dirham (or 85 to the dollar), against 23.33 levels yesterday. For Indian expats in the UAE thinking of sending money home, they will need to give serious thought whether they should do it now or wait for market trends to cool off.
This comes after the dollar index – which gives the relative strength of the dollar – dropped further as the global market fallout continues after President Trump announced a swathe of new – and high – tariffs on US bound goods.
“Everyone knew the Trump tariffs were coming on April 2,” said an FX analyst. “But that it will hurt the dollar is something of a surprise, which is why multiple currencies, including the Indian rupee, is regaining some of their lost strength.”
The dollar index has slipped further, to 101.67 - and way below the 110.18 of January 8, 2025, which was its highest point so far this year. It's not just the INR that's gaining in comparison, with the euro and the pound also pulling up strongly against the dollar.
'Highest point in over 3 months'
"The last time the INR was at 23.14 levels was on December 20, 2024," said Neelesh Gopalan, senior FX analyst. "If this trend of more dollar weakness continues, no one will be surprised if the INR goes all the way back to 22 levels against the dirham.
"No one could have forecast such an erosion in the dollar, even if the trend might be short-lived."
For many expats in the UAE, the period from November, when Trump won the election, to early March was an exceptional phase. With the dollar riding high, they found they were getting more on their remittances from the UAE. It's the dollar party that's ending now. At least for the moment.
According to Stephen Innes, Managing Partner at SPI Asset Management, "The dollar’s taking it on the chin again as FX markets ramp up pricing for a deeper US recession and a forced Fed pivot.
"As recession risks escalate, so does the fear that global capital pulls back from US assets.
"Without credible fiscal stimulus or a policy anchor, the dollar’s losing its safe-haven luster — starting to look more like the emperor with no clothes, stripped down and exposed to the macro storm..."
