Indian rupee hits record low against UAE dirham. Is this the best time to send money home?

04/03/2026 07:09 AST

Indian expatriates in the UAE woke up to a sharp currency shift on Wednesday morning after the Indian rupee touched its weakest level ever against the UAE dirham, opening a potentially attractive window for remittances.

Rupee briefly weakened to around 25.05 against Dh1 at about 8.55 am on Wednesday, compared with roughly 24.85 a day earlier. The move pushed the rupee past the psychological 25 mark against the dirham for the first time.

Every dirham now converts into more rupees than at any point in recent history, increasing the value of transfers sent from the UAE to India. A Dh1,000 remittance now converts into about ?25,040, offering noticeably higher returns compared with levels seen only a few weeks ago.

The sudden slide in the rupee has put the spotlight back on remittance strategies among UAE residents, particularly those who send money home regularly to support families or service financial commitments.

A steady climb through February
Currency traders say the latest move is part of a gradual weakening trend that has been unfolding through the past month.

Early February levels hovered closer to the mid-24 range, with the dirham converting at roughly ?24.49 to ?24.54 during the first week of the month. Those levels held fairly steady for several days before a slow upward drift began.

By the middle of February the exchange rate had crept into the ?24.57 to ?24.61 range, reflecting modest but consistent pressure on the rupee. The final weeks of the month brought another incremental shift, with rates moving closer to ?24.66.

Momentum gathered toward the end of February and the start of March. The rate climbed to around ?24.71 on March 1, followed by ?24.82 on March 2 and ?24.85 the next day. Wednesday's jump past ?25 marked the sharpest single shift in weeks and pushed the currency into record territory.

Currency market observers say the move highlights how quickly exchange rate dynamics can change once external pressures begin to build.

Gulfnews