Remit to India? Will the rupee stay weak against US dollar, UAE dirham?

Record-low rupee boosts remittance value for UAE expats, but will the trend last?

Last updated: September 07, 2025 | 16:39

2 MIN READ

Remit to India? Will the rupee stay weak against US dollar, UAE dirham?

Ahmad Alotbi/Gulf News - Lulu Exchange

Dubai: Indian expats in the UAE have been watching the rupee nervously. The currency hit a record low of ₹88.17 per US dollar last week, with the exchange rate against the UAE dirham touching ₹24.05.

For families sending money home, this weakness has made every dirham stretch further. The question now is: will this window last, or will the rupee slide even more?

Why the rupee is under pressure

Stronger US dollar: The dollar has gained sharply worldwide, pushing down many major currencies, not just the rupee.
Tariff tensions: The US recently imposed steep tariffs of up to 50% on Indian goods, alongside penalties for India’s oil trade with Russia. These have weighed on investor sentiment.
Market intervention: The Reserve Bank of India (RBI) has stepped in through state banks to slow the fall, but intervention only smooths volatility — it doesn’t reverse the trend.

Also Read: Indian expats in UAE send more money home as rupee weakens against UAE dirham

What Indian government says

Finance Minister Nirmala Sitharaman has acknowledged the rupee’s weakness but stressed that India is not alone. “This is not the case only with rupee versus dollar, it’s the case with many other currencies versus the dollar,” she told PTI, adding that the government is keeping a “good watch” on exchange rates.

What it means for UAE remitters

Short term: With tariffs biting and US monetary policy still tight, the rupee is likely to stay weak in the near term. This favors expats sending money now.
Medium term: Much depends on whether the US Federal Reserve shifts toward rate cuts and if India finds relief from trade tensions.
Dirham advantage: Because the dirham is pegged to the US dollar, movements against the greenback directly translate into AED/INR shifts.

For now, remitters enjoy an unusually strong payout. The risk is that RBI action or easing of US tariffs could stabilize the rupee later in the year. Until then, UAE expats may want to take advantage of these record conversion rates.

Justin VargheseYour Money Editor

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.