UAE Expats Weigh Remittance Timing:
Rupee hits 23.14 against the dirham as dollar weakens sharply post US tariff shocks
The Indian rupee has surged to its strongest level in over three months, trading at 23.14 per UAE dirham (85 against the US dollar)—a noticeable jump from the 23.33 level recorded just a day earlier. This development is sparking a critical decision point for Indian expats in the UAE: whether to remit money home now or wait to see if this trend cools off, reported gulfnews.com.
With the dollar index tumbling, multiple global currencies including the Indian rupee have staged a comeback.
The boost in rupee strength is directly tied to the weakening of the dollar, which slipped further following President Donald Trump’s April 2 announcement of sweeping new tariffs on imports into the US. While these tariffs were anticipated, the resulting blow to the dollar came as a surprise to markets.
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The dollar index has fallen to 101.67, a steep drop from its January 8 high of 110.18
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This shift has empowered not just the Indian rupee but also the euro and the British pound, which have gained ground against the greenback
‘Most robust level since December 2024’
“This is the highest point the INR has reached since December 20, 2024,” noted Neelesh Gopalan, Senior FX Analyst. “If the dollar weakness persists, we could even see the rupee return to the 22 mark against the dirham.”
The volatility follows a period of significant advantage for Indian expats. From November 2024 to early March 2025, during the post-election rally of the dollar, remittances from the UAE to India fetched higher returns. Now, that advantage appears to be reversing, at least in the short term.
Stephen Innes, Managing Partner at SPI Asset Management, commented, “The dollar’s taking it on the chin again as markets begin pricing in a deeper US recession and a likely Federal Reserve policy pivot. Without strong fiscal stimulus or a policy anchor, the dollar is rapidly losing its safe-haven appeal.”
As global capital becomes cautious about US asset exposure, currencies like the INR are benefiting from the rebalancing wave sweeping through FX markets.
