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Low INR opens remittance window for NRIs
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US tariffs on Indian exports and global trade tensions drag rupee to lifetime low
The Indian rupee has slipped to an all-time low of 24.04 against the UAE dirham, marking a historic drop that is set to benefit millions of Indian expats remitting money home from the Gulf, reported gulfnews.com.
For NRIs across the UAE, Saudi Arabia, and Qatar, this means the most attractive remittance rates in years. Leading UAE remittance platforms are already offering between 23.95 and 24 per dirham, while exchange houses are pegging rates at 23.91 and banks slightly lower at 23.81. In Saudi Arabia, Indians are receiving 23.51 per riyal, while in Qatar the rupee stands at 24.21 per dirham equivalent.
The sharp decline comes amid heavy pressure from the new US 50% tariffs on Indian exports, which came into effect on August 27
The rupee had previously hit its lowest at 23.94 in February this year. With the current fall, the currency has crossed a critical psychological level, further impacting global investor sentiment.
Neelesh Gopalan, Treasury Manager at a Dubai-based remittance firm, said: “There’s the US tariff pressure, and the rupee has also weakened against the Chinese yuan in offshore trading.”
In the dollar-rupee market, the INR breached the 88 mark, touching 88.31 before settling at 88.2 by market close.
Foram Chheda, founder of ChartAnalytics.co.in, explained: “The fall below 88 is largely driven by heavy selling from foreign institutional investors amid US-India trade tensions. Capital outflows are worsening due to weak corporate earnings and higher US Treasury yields, making Indian assets less attractive.”
Adding to the pressure are persistent dollar demands from oil importers and global risk aversion that has further dragged the currency down.
How India’s Rupee Hit Key Milestones Against Dirham:
- 20 – March 5, 2020
- 21 – May 9, 2022
- 22 – September 2022
- 23 – November 29, 2024
- 24 – August 29, 2025
