Indian Expat Remittances Face Currency Fluctuations Amid U.S. Tariffs
The Indian Rupee's Value Against the Dirham Stumbles, Prompting Urgency in Remittances for UAE-Based Expats
Indian expatriates in the United Arab Emirates are facing a decline in the value of the Indian rupee against the UAE dirham, creating pressure to send remittances back to India sooner rather than later.
Currently, the Indian rupee is trading at approximately 23.30 to 23.33 dirhams, a notable decrease from 23.94 on February 10, 2025. This trend reflects a broader strengthening of the dirham against the rupee, with the exchange rate dropping from 23.50 on March 20, 2025.
Currency analysts indicate that the rupee has appreciated by about 1% compared to its earlier positions in February and early March.
Neelesh Gopalan, a senior foreign exchange analyst, commented on the evolving situation, noting that the focus has shifted to whether the rupee will stabilize at these lower levels or return to a stronger position of 22 to the dirham.
The rupee has been fluctuating significantly since it initially hit 23 levels against the dirham on November 29, 2024, and previously broke the 22 mark in September 2022.
In light of these developments, remittance service providers have advised Indian expats to consider sending money home promptly.
An official from a leading remittance provider highlighted potential volatility in the financial markets, exacerbated by recent announcements from U.S. President Trump regarding tariffs on imports from multiple nations.
The newly imposed tariffs have started to affect investor sentiment, particularly in Asian markets, contributing to increased uncertainty surrounding the dollar's strength.
Observers note that the dollar index, which reflects the dollar's performance against a basket of major currencies, has fallen nearly 5% since January 1, 2025, intensifying concerns about the dollar's future stability.
Amid these fluctuations, experts have expressed cautious views on the rupee's potential trajectory.
Krishnan Ramachandran, CEO of Barjeel Geojit Financial Services, cautioned that the tariffs could result in a downward pressure on the rupee, predicting a potential weakening to levels between 23.55 and 23.60 in the coming weeks.
Further analysis from technical research analysts suggests that the current trends indicate a possible stabilization around the 85.66 mark for the USD/INR exchange rate, reflecting prior extremes where the USD/INR reached an all-time low of 87.97. Despite recent strengthening, the rupee is expected to remain subject to volatility as global trade tensions continue.
Market participants are advised to maintain vigilance, as ongoing developments with U.S. tariff policies could further influence the dynamics between the rupee and the dirham, as well as the broader currency landscape.
Currently, the Indian rupee is trading at approximately 23.30 to 23.33 dirhams, a notable decrease from 23.94 on February 10, 2025. This trend reflects a broader strengthening of the dirham against the rupee, with the exchange rate dropping from 23.50 on March 20, 2025.
Currency analysts indicate that the rupee has appreciated by about 1% compared to its earlier positions in February and early March.
Neelesh Gopalan, a senior foreign exchange analyst, commented on the evolving situation, noting that the focus has shifted to whether the rupee will stabilize at these lower levels or return to a stronger position of 22 to the dirham.
The rupee has been fluctuating significantly since it initially hit 23 levels against the dirham on November 29, 2024, and previously broke the 22 mark in September 2022.
In light of these developments, remittance service providers have advised Indian expats to consider sending money home promptly.
An official from a leading remittance provider highlighted potential volatility in the financial markets, exacerbated by recent announcements from U.S. President Trump regarding tariffs on imports from multiple nations.
The newly imposed tariffs have started to affect investor sentiment, particularly in Asian markets, contributing to increased uncertainty surrounding the dollar's strength.
Observers note that the dollar index, which reflects the dollar's performance against a basket of major currencies, has fallen nearly 5% since January 1, 2025, intensifying concerns about the dollar's future stability.
Amid these fluctuations, experts have expressed cautious views on the rupee's potential trajectory.
Krishnan Ramachandran, CEO of Barjeel Geojit Financial Services, cautioned that the tariffs could result in a downward pressure on the rupee, predicting a potential weakening to levels between 23.55 and 23.60 in the coming weeks.
Further analysis from technical research analysts suggests that the current trends indicate a possible stabilization around the 85.66 mark for the USD/INR exchange rate, reflecting prior extremes where the USD/INR reached an all-time low of 87.97. Despite recent strengthening, the rupee is expected to remain subject to volatility as global trade tensions continue.
Market participants are advised to maintain vigilance, as ongoing developments with U.S. tariff policies could further influence the dynamics between the rupee and the dirham, as well as the broader currency landscape.
Translation:
Translated by AI
