Indian rupee hits record low against UAE dirham amid remittance surge

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Dubai: The Indian rupee fell to a new all-time low against the UAE dirham, raising money transfers from Gulf countries as expats in UAE rushed to take advantage of the favourable exchange rate. The UAE dirham reached a record high of ₹26 against the Indian rupee this week.

Currency analysts linked the rupee's drop to rising global crude oil prices, ongoing foreign fund outflows, and pressure on India's import bills. In recent weeks, ongoing volatility in global markets has put pressure on the currency.

The weakened rupee has offered a major benefit to Indian citizens living in the UAE, since each dirham now converts into more Indian money. According to exchange houses and financial experts, remittance activity has increased significantly as many non-resident Indians have rushed transfers to family and investments back home.

Economists, on the other hand, warned that the rupee's depreciation might raise the cost of imports, notably petroleum and essential goods, thus contributing to India's economic stagnation. The Reserve Bank of India is anticipated to continue closely monitoring the currency market in order to reduce excessive volatility.