Al Ansari Exchange, one of the UAE’s leading remittance providers, has issued a critical analysis of the Indian rupee’s steep decline against the UAE dirham — which is pegged to the US dollar. The rupee has reached historic lows, hovering around ₹23.91 per AED, with intra-week volatility ranging between ₹23.63 and ₹23.95, marking one of its weakest performances in recent years.

This depreciation stems from multiple factors:

• Rising US‑India trade tensions and potential tariffs of up to 25% on Indian exports

• A significant decline in foreign equity inflows, with over USD 2 billion pulled out in July 2025

• RBI adopting a cautious currency intervention policy

• Surge in global oil prices and geopolitical uncertainty increasing India’s import burden

📈 Impact & Response

With the rupee weakening, Al Ansari Exchange has seen a notable spike in remittances from Indian expatriates in the UAE who are taking advantage of the stronger conversion value. This allows families in India to receive more rupees for the same dirham amount, boosting inflows significantly.

In response, Al Ansari Exchange has:

• Ensured adequate liquidity across its physical and digital channels

• Rolled out rate alerts via its mobile app

• Launched special promotion offers

• Deployed additional staff at high-demand branches for seamless service