Dubai — The Indian rupee slipped to 23.85 against the UAE dirham early Monday, nearing the critical 24-mark as renewed US tariff threats reignited pressure on the currency.
Opening at 23.9 (₹87.85 per US dollar), the rupee weakened from Friday’s close of 23.86. Despite a firmer start to the week, market sentiment remains fragile amid escalating trade tensions between Washington and New Delhi.
The current slide brings the rupee within touching distance of February’s all-time low of 23.94. Currency experts warn that a further decline toward 24 appears increasingly likely without resolution on the trade front.
Several UAE-based Indian expatriates transferred funds over the weekend at exchange rates between 23.7 and 23.8. In contrast, some UAE businesses with Indian operations delayed transactions, expecting further depreciation this month.
Analysts attribute the pressure to geopolitical factors, particularly India’s ongoing purchase of Russian oil and its decision to bypass dollar payments—both of which complicate trade negotiations with the US. Recent remarks from President Trump threatening higher tariffs have further dampened investor sentiment.
“If the current tension continues, the rupee could breach the 88 mark to the dollar,” said Neelesh Gopalan, Treasury Manager at a Dubai remittance platform. “This heightens the risk of capital outflows and adds to market instability in India.”
With no immediate breakthrough in sight, the US-India trade impasse is expected to weigh on the rupee in the near term. Traders and remitters alike are closely watching for any signs of de-escalation.
