Recent dynamics affecting the exchange rate between the UAE Dirham (AED) and the Indian Rupee (INR) indicate a potential stabilization with specific supportive and adverse factors at play. Analysts highlight that the AED has appreciated against several Asian currencies, including the INR, largely due to robust initiatives from the UAE's government, including a significant currency swap agreement with Turkey and a recent interest rate cut by the UAE Central Bank. These measures are anticipated to enhance liquidity in the domestic market and bolster investor confidence. As of November 2025, the AED to INR exchange rate stands at 24.33, which is marginally above its three-month average of 24.1, reflecting a stable range of 23.89 to 24.41.
In contrast, the Indian Rupee faces substantial headwinds, having reached a record low against the US dollar in September 2025. Key factors contributing to the INR's continued pressure include increased H-1B visa fees and weakened foreign direct investment inflows. The Reserve Bank of India's intervention signals ongoing efforts to stabilize the currency, yet persistent demand from importers and weak manufacturing exports suggest that the INR's outlook remains bearish. Forecasters point to a narrowing policy rate differential between India and the US as another factor that could keep the INR under pressure in the near term.
Overall, the current exchange rate landscape suggests that while the AED is supported by favorable developments within the UAE, the INR may struggle against this backdrop, potentially benefiting those making transactions from AED to INR in the immediate future.
