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

Dubai: Indian expats in the UAE are getting one of the best remittance rates this month, as the rupee slides to 23.56 against the dirham. That’s a welcome drop for many who have held off on sending money home.

After mostly trading in the 23.2–23.3 range through July, the Indian currency suddenly weakened this week—offering a rare opportunity for those awaiting their end-of-month salaries.

UAE exchange houses are quoting between 23.55 and 23.56, levels not seen since late June. And back then, the high didn’t last long. So, should you send now or wait?

Currency analysts say the rupee’s current weakness is largely due to uncertainty around a US-India trade agreement, with a final decision expected before August 1.

India’s Commerce Minister Piyush Goyal confirmed over the weekend that negotiations with Washington are progressing quickly. If a deal is signed soon, the rupee could strengthen again—potentially revisiting the 23.2–23.3 range.

But if talks drag or fall through, expats may still get rates in the 23.52–23.63 range for a while longer, analysts say. (Check latest forex rates here.)

Adding to the rupee’s struggles is the continued strength of the US dollar, which recently rose to 97.68. “The rupee slipped below 86.50 against the dollar, mainly due to profit booking and global uncertainty,” one forex expert noted.

The upcoming US Federal Reserve rate decision this week could also impact dollar sentiment—and indirectly affect the rupee-dirham rate.

Meanwhile, India’s central bank added $150 million worth of gold to its reserves last week, bringing the total to $84.5 billion. This move underscores the broader market caution.

If you’re holding off for a better exchange rate, keep a close eye on the US-India trade deal news. For now, the 23.56 level is among the most favourable of July—and many are locking in their transfers while they can.