The dollar and the dirham are turning all powerful against the rupee when it comes to remittances. Gulf News Archive
Indian rupee continues volatile ride to move closer to 24/Dh
Dubai: The Indian Rupee has crashed to another new low of Dh23.94 against a dirham, over more concerns about US President Donald Trump’s latest tariff talk.
The INR was at Dh23.80 to the dirham when the currency markets closed last Friday evening.
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This time, the RBI is intervening strongly to stop the rupee’s drop. At around the 11:30am India time, the rupee firmed back to 23.84 levels. (India’s central bank typically sells dollars when the INR comes under extreme pressure.)
What this means is that the favourable situation continues for Indian expats in the UAE and the Gulf in sending money back to the home country.
There had been heavy remittances over the last weekend as many NRIs had thought the rupee could be in with a chance to firm up this week. Especially after the RBI’s meeting on Friday last, which cut interest rates for the first time in nearly 5 years and where the new central bank governor gave his thoughts on where the Indian economy is heading.
But then Trump brought up the subject of tariffs on aluminum and steel imports into the US from anywhere, and that was enough to bring back the market jitters all over again.
1.5% in just 10 days
In the first 10 days of this month, the INR’s drop has been nearly 1.5% falling from the closing level of 23.58 (86.64 in dollar terms) on January 31, 2025, said Neelesh Gopalan, senior FX analyst based in Dubai.
Source: Gulf News
