Rupee Drops to 23.5 vs Dirham: Indian Expats Rush to Send Money Home
The Indian rupee (INR) continues to hover close to the 23.5 mark against the UAE dirham (AED), prompting a surge in remittances by Indian expats from the Gulf.
Dubai: The Indian rupee (INR) continues to hover close to the 23.5 mark against the UAE dirham (AED), prompting a surge in remittances by Indian expats from the Gulf.
Table of Contents
Despite seasonal expenses such as air travel and summer holidays, many non-resident Indians (NRIs) are seizing this opportunity to send money home.
Rupee Hits 23.5 Against Dirham: NRIs React Swiftly
The rupee began the week at 23.34 against AED but quickly weakened to 23.5, triggering a wave of transfers through digital remittance platforms. Currency exchange houses in the UAE reported a sharp uptick in transactions, with Thursday, June 19, witnessing one of the highest volumes of AED-INR transfers in recent weeks.
“Even when the INR briefly recovered to 23.46, the momentum didn’t stop,” said a senior official at a Dubai-based exchange house.
Expats Not Waiting for Further Drops in INR
Unlike in the past, NRIs are no longer holding out for lower rates. The sentiment now is clear:
“Have cash, will remit now.”
There’s a growing belief that the rupee could bounce back to 23.3–23.4 levels by the end of June. “If it does drop further in July, it’s a bonus,” the official added.
Follow for more details: munsifdaily.com
Will the Rupee Stay Weak? Key Factors to Watch
Despite ongoing geopolitical tensions such as the Israel-Iran conflict, the US dollar is not showing its usual strength as a safe-haven asset. This shift is influencing INR movement, with gold replacing the dollar as the go-to secure investment.
Here are key economic factors that may influence the rupee in the coming months:
● FII Inflows Rebound
The US withdrawing reciprocal tariffs and improving trade agreements could bring back foreign institutional investment into India.
Also Read: IDY 2025: Let’s Build a Healthy Society Through Yoga, Says Maharashtra CM Devendra Fadnavis
● Rise in India’s Defense Production
Growing exports and reducing import dependency through local manufacturing may narrow the trade and current account deficits.
● Positive Outlook from Trade Deals
India’s recent UK trade deal and optimism around a possible US-India agreement are boosting investor confidence.
● Inflation and RBI Policy
With inflation easing below the RBI’s 4% target, there’s more scope for rate cuts, which may stabilize the rupee.
● RBI Intervention
The Reserve Bank of India is expected to intervene if volatility spikes, which could help maintain balance in currency markets.
What’s Next for Indian Expats in UAE?
Industry insiders suggest that remittance flows will remain strong through the weekend and into Monday, especially if the exchange rate remains at or below 23.5. For NRIs, this might be the ideal window to maximize returns on money transfers to India.
