Indian rupee lowest in 6 weeks - UAE NRIs get big break on next salary transfers

Indian rupee weakness also due to 'delays' in getting US trade deal done: analysts

Last updated: July 29, 2025 | 08:38

Manoj Nair, Business Editor

1 MIN READ

The Indian rupee weakness could extend into next few days in the absence of a US trade deal. There is also the stronger dollar to reckon with.

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Dubai: The Indian rupee has slipped below 23.6 for the first time since June 17, opening up a potentially bumper period for Indian expats in the UAE and other Gulf countries on their imminent salary transfers home.

The rupee is at 23.64 to one dirham after closing Monday (July 28) at 23.59. The expectation is that the weakness will continue through the next 5-7 days – and which will be crucial for NRIs with remittances coming up.

Also Read: Indian rupee at 23.56 to dirham: Is this the best time to send money from UAE?

The rupee was at 23.61 on June 17 and that lasted for a couple of days. And the time before that when rupee dropped below 23.6 was first week of March – at the time it even dived to 23.81. (O February 10, the rupee was at its lowest ever point of 23.92.)

“Most UAE remittance channels will be offering 23.5 – we believe the rupee’s weakness will continue for the next few days, at least,” said Neelsh Gopalan, Treasury Manager with a Dubai remittance platform. “Banks are still offering exchange levels of the high 23.4s.”

Where's the US deal?

Some of the pressure on the INR could stem from India yet to close the trade deal with the US.

"That's one factor, and there is also the dollar strengthening following the EU-US trade deal," said Foram Chheda, founder of ChartAnalytics. "The Dollar Index held firm above 98.6 on Tuesday, after rising 1% in the previous session, supported largely by euro weakness following the US-EU trade agreement widely seen as favoring the US economy."

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.