Indian Rupee Slips to Record Low Against UAE Dirham; RBI Likely Intervenes to Curb Losses

The Indian rupee plunged to a record low against the UAE dirham on Thursday, touching levels around 24.6 rupees per dirham, amid persistent foreign capital outflows and a firm U.S. dollar. The depreciation marks the weakest point for the rupee against the dirham in history.

Market analysts attribute the fall to a combination of strong global dollar demand, uncertainty over U.S.-India trade negotiations, and sustained foreign investor withdrawals from Indian equities, which have totaled nearly $18 billion this year. Since the UAE dirham is pegged to the U.S. dollar, the rupee’s weakness against the dollar is mirrored in its exchange rate with the dirham.

While the rupee has weakened sharply, reports indicate that the Reserve Bank of India (RBI) has stepped in to limit the losses. The central bank is believed to have been selling dollars through state-owned banks to curb excessive volatility and stabilize the currency without committing to a fixed exchange rate.

The decline in the rupee has mixed implications. Indian expatriates in the UAE may benefit from higher remittance value, while importers face rising costs, which could add pressure to domestic inflation.

Analysts say the rupee’s trajectory will remain sensitive to global economic conditions, foreign investment flows, and trade developments, with the RBI likely to continue intervening as necessary to prevent sharp swings.