Remit now: Indian rupee nears 24 against UAE dirham – record low in sight

Dubai: The Indian rupee has weakened sharply to 23.91 against the UAE dirham, edging close to its all-time low and presenting one of the most favourable remittance windows this year for Indian expats in the UAE.

The sudden drop follows a 25% US tariff on Indian exports, a move that rattled Indian markets and applied fresh pressure on the rupee. After holding steady around 23.3–23.4 for most of July, the currency began sliding this week, aligning with the end-of-month salary cycle—a critical period for remittances. (Check the latest forex rates here.)

At UAE exchange houses, buy rates are hovering above 23.80, last seen in February when the rupee briefly hit 23.93—its weakest-ever level against the dirham.

For consumers in the UAE, this development is already influencing remittance and currency exchange patterns. Al Ansari Exchange has observed a surge in remittance activity, as Indian expatriates take advantage of the more favourable rates to send additional funds back home.

Several factors are converging to weigh down the rupee:

The rupee is also under pressure from import-related dollar demand in India and uncertainty over potential US penalties related to India's crude oil imports from Russia.

Major banks including Deutsche Bank, Barclays, and MUFG expect the rupee to remain one of Asia’s worst-performing currencies in the second half of 2025.

Analysts say the current 23.9 level could remain in place—or even worsen—if clarity does not emerge on US policy actions or if foreign inflows fail to pick up.

Currency strategists are largely aligned: For UAE-based Indian expats, this could be the peak of the current dip. With the rupee slipping quickly, and the outlook still clouded by macroeconomic uncertainty, locking in remittances now could mean better returns before any short-term recovery.

“Even a minor rebound in the rupee could wipe out this advantage,” said Jateen Trivedi of LKP Securities.“The markets are waiting for the RBI’s monetary policy decision on Wednesday, which could bring more volatility.”