Many Indian expatriates are adopting a “wait and watch” strategy for transferring money back home as the Indian rupee reaches record lows against the UAE dirham. Some are hoping for the rupee to drop further, while others are focusing on investments in the UAE.
“The rupee has been declining over the past two years,” stated Dubai resident Adil Eshack. “I haven’t sent money to India for several months. Instead, I choose to invest in UAE dirhams and US dollars because sending money to India is reducing its value.”
The rupee fell to 24.0762 against the UAE dirham on Friday, September 5, surpassing its previous all-time low of 24.0681 set on September 1.
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Anticipating Further Rupee Declines
Dubai resident Mohammed Iqbal believes the rupee might decline further. “With ongoing tariff uncertainties, I expect the rupee to slide further soon,” he said. “Unless there are policy changes in the US government, I don’t see a shift in market conditions. So, I’m holding onto my money for now.”
The persistent drop comes amid traders’ concerns about US tariffs on India, while possible dollar-selling intervention by the Reserve Bank of India limited sharper losses, traders noted.
Iqbal also expressed concern over inflation with the rupee’s continuous fall. “Ten years ago, I bought a property in India with a loan from Dubai,” he said. “Despite property price increases, I still faced a loss. If I had invested in the UAE, my ROI would have been much higher.”
Strategic Money Transfers
Suresh M., another UAE resident, mentioned sending money on September 1 when the rupee dipped. “I had just received my salary, and my family needed it for Onam shopping, so I sent what was needed for the month.”
Conversely, Melissa Edward from Abu Dhabi waits for favorable exchange rates before transferring money. “I keep some money in the bank to earn interest and also invest in an Indian stock account. Once I get app notifications about favorable rates, I send money home immediately.”
Melissa also prefers using online apps for transfers instead of exchange houses. “I’ve tried various methods and found apps offer the best rates,” she added.
