The Indian rupee has inched close to its strongest level of 2025 against the UAE dirham, trading at 23.16 this morning. This matches its near-peak performance for the year, second only to the 23.14 mark recorded on April 4. The firming rupee comes as the US dollar continues to show signs of weakness, prompting Indian expats in the UAE and across the Gulf to monitor exchange rates closely for optimal remittance timing, reported gulfnews.com.
From a low of 23.94 in February, the rupee’s rally offers both opportunity and caution for expats planning fund transfers to India.
According to Neelesh Gopalan, a Dubai-based senior FX analyst, “The INR has strengthened significantly from its February 10 low of 23.94. Expats had favorable remittance windows when rates touched 23.50 or higher. But with the rupee firming now, their advantage is narrowing.”
Currency traders point to a weakening US dollar index—currently at 98.36 compared to last year’s high of 110—as a key driver behind the rupee’s rebound. In parallel, India’s forex reserves have risen to $677.8 billion, adding further stability to the currency.
FX reserves climb, US dollar drops, and India’s rupee gains ground – but will it hit 22?
This uptrend is also supported by declining dollar strength globally. For instance, where one dollar fetched 87.95 rupees in February, it now gets only about 85.3 rupees. Analysts say India’s growing reserves give it more leverage to withstand market volatility, including any disruptions caused by US tariffs.
Traders are also eyeing US Senator JD Vance’s upcoming India visit, with hopes of a new Indo-US economic framework potentially giving further momentum to the rupee’s resilience.
Indian expats are being advised to remain alert and assess market cues carefully before making remittances, as the currency landscape remains fluid.
