A recent dip in the Indian rupee’s value against the UAE dirham has led to a noticeable increase in remittance flows from the UAE to India, according to Al Ansari Exchange.
Currency value decline
The rupee has weakened by roughly 0.5% over the past few days, reaching a rate of around INR 24.03 per Dhs. This shift comes after a period of stronger performance and is attributed to a mix of international and domestic pressures.
Al Ansari Exchange cited several contributing factors, including the United States’ 50% tariff on Indian exports, conservative monetary policies by the Reserve Bank of India, and rising global oil prices. The continued strength of the US dollar — to which the dirham is pegged — has also amplified the impact.
Remittance volume up
The weaker rupee has encouraged more remittances from the UAE to India, with a 15% rise in transaction value reported by Al Ansari Exchange.
“This change in the exchange rate presents a valuable opportunity for the Indian community in the UAE to maximise the value of their remittances,” said Ali Al Najjar, Chief Operating Officer at Al Ansari Exchange.
“At Al Ansari Exchange, we are committed to offering the best rates and providing flexible and secure financial services that enable our customers to make the most of these favorable conditions.”
The increase also coincides with Onam, a key festival for the Indian expatriate community, during which many individuals send additional financial support to their families.
To handle the rising demand, the company has reportedly enhanced its operational readiness, including expanding liquidity and extending service hours at select locations.
tanvir@dubainewsweek.com
